WS #15542

Geopolitical tensions in the Middle East are escalating sharply, with tanker attacks in the Strait of Hormuz pushing Brent crude above $105 and WTI above $93. This supply shock is driving a broad market selloff as higher yields and inflation risks weigh on equities, specifically hurting airlines and consumer discretionary. Concurrently, the Fed's latest minutes signal another rate hike is likely, compounding the pressure on growth stocks and small caps while benefiting financials. In the technology sector, a broad AI-related selloff is evident, with NVIDIA's portfolio companies declining, though Google Cloud's launch of the Gemini agent provides a specific catalyst for Alphabet.