WS #15401

Global equity markets are extending record intraday highs, with the Nasdaq and S&P 500 reaching new peaks as the tech rally broadens beyond the mega-cap leaders. Nvidia is approaching a $6 trillion market capitalization, supported by sustained institutional buying and positive sentiment around the AI infrastructure build-out. This bullish momentum is corroborated by the completion of the massive $81 billion Paramount-Skydance-Warner Bros. merger, which is driving significant activity in media and entertainment sectors, and a $15 billion AI data center announcement in Japan involving Dell and JERA, signaling continued global capex expansion in power and compute. Conversely, geopolitical risks in the Middle East are escalating, marked by a Saudi-led coalition intercepting a Houthi ballistic missile and ongoing US-Iran tensions. Despite these headwinds, the market is exhibiting resilience, with defensive sectors like utilities leading gains and oil prices falling, which is boosting airline stocks such as American Airlines. The macro backdrop remains supportive for risk assets, as the Federal Reserve considers raising bank asset thresholds and bond yields are falling, easing pressure on growth stocks. However, the persistent threat of supply chain disruption in the Red Sea and broader Middle East keeps a floor under energy costs and shipping rates.