WS #1362

Geopolitical tensions in the Middle East have intensified with new corroborating reports, amplifying market risks. The Wall Street Journal confirms Russia is expanding intelligence sharing and military cooperation with Iran, including satellite imagery and drone technology transfers, as reported by multiple Bluesky sources. This aligns with earlier intelligence and is compounded by unverified but circulating social media claims that the U.S. warship USS Abraham Lincoln was struck by Iranian missiles, sustaining heavy damage—though these require official confirmation. These developments heighten regional instability, likely fueling risk-off sentiment and supporting defense/security sectors, while potentially pressuring oil prices and broader market volatility. Notably, Democrats are urging a windfall tax on big oil companies as they profit from the Iran war, with ExxonMobil and Chevron shares up over 5% and 7% respectively since the conflict began, per The Guardian. This could impact energy sector sentiment and policy discussions. On the corporate front, specific stock-moving developments include Rocket Lab entering an agreement for up to $1 billion in an at-the-market stock offering, which may dilute shares and pressure its stock. Oklo receives U.S. Department of Energy approval for its Groves Isotopes Test Reactor in Texas, a positive regulatory step for the nuclear sector. Andersen Group reports Q4 earnings beating estimates, with EPS of $0.07 vs. $(0.26) estimate and sales of $170.346M vs. $157.290M estimate, signaling strength in its sector. Dark pool alerts show large institutional orders for SPY and IVV, with $753.65M and $2.97B respectively, indicating significant behind-the-scenes market activity that could influence broader indices. Additionally, Huawei announces a return to India, potentially impacting tech and telecom sectors amid ongoing geopolitical frictions.