WS #12404

The US-Iran conflict is escalating sharply, with multiple sources confirming an eighth consecutive night of US strikes on Iran, retaliating for the deaths of two US service members in Jordan. Iran has launched ballistic missiles toward Kuwait and reported explosions in Abadan and Bandar Abbas. The Strait of Hormuz blockade continues, with Iran claiming to have stopped four ships. This escalation is driving oil prices higher and pressuring equity markets, with the Dow Jones losing 406 points on Friday. Meanwhile, the Russia-Ukraine war saw Russia's largest ballistic missile barrage on Kyiv overnight, with over 40 missiles and 125 drones fired, hitting five districts. This adds to geopolitical risk. On the corporate side, Apple briefly surpassed Nvidia as the world's most valuable company, reaching a $4.92 trillion market cap, before Nvidia reclaimed the lead. Apple's AI strategy received a boost from China's approval of Apple Intelligence. Netflix shares tumbled over 8% after forecasting Q3 revenue and earnings below expectations, and announced it will reduce viewing reports frequency. IBM's stock crashed 25% after preliminary Q2 results missed estimates, with revenue up only 1% and infrastructure revenue down 7%. The AI spending boom is shifting toward hardware, hurting IBM's software and consulting segments. TSMC reported strong results but the stock fell 8.8% in a week due to margin concerns from rising capex. The semiconductor sector is under pressure, with the iShares Semiconductor ETF heading for its worst week in over a year. Gold and silver are under pressure from a stronger dollar and rising oil prices. The overall narrative is one of escalating geopolitical tensions and mixed corporate earnings, with tech stocks facing headwinds from AI spending shifts and margin concerns.