WS #15392

Global equities are rallying to new intraday highs, driven by a confluence of AI infrastructure optimism and a cooling labor market that has shifted rate hike expectations. The S&P 500 and Nasdaq are surging as Nvidia approaches a $6 trillion market capitalization and Alphabet secures a massive 20-year nuclear power deal with Constellation Energy, lifting nuclear stocks like Oklo. This tech-led momentum is supported by a weak US jobs report that casts significant doubt on an October Fed rate hike, effectively pricing in a dovish pivot that benefits growth and high-multiple assets. However, the geopolitical backdrop remains highly volatile, with the canonical theme locked in an escalation phase. Houthi strikes continue to target Saudi Aramco and Riyadh, while Iran's influence over the Strait of Hormuz persists despite its reopening. This dual narrative of financial easing and geopolitical friction has created a mixed-cohort environment: energy beneficiaries are rising on supply fears, while shipping and consumer discretionary faces headwinds. Meanwhile, corporate M&A activity is accelerating, highlighted by Uber's $2.3B acquisition of ezCater and the completed Paramount-Warner Bros. merger, signaling consolidation in the face of macro uncertainty.