WS #15546

The dominant market-moving event is a sharp escalation in Middle East tensions, specifically the Houthi strike on Riyadh airport and the destruction of a Saudia Airlines aircraft, which has triggered a massive +5.4% surge in Brent Crude to $105.60. This supply shock is rippling through global markets, pressuring equities and whipsawing bonds as investors price in higher inflation and potential Fed rate hikes. The narrative of Middle East tensions has escalated significantly, moving from localized skirmishes to direct infrastructure strikes with commercial aviation casualties. Simultaneously, the tech sector faces a complex divergence. While Broadcom's $50B financing and SpaceX's $30B debt plans signal massive capital intensity in the space/AI infrastructure play, they are sparking industry-wide debt concerns, negatively impacting leveraged peers like AST SpaceMobile. In the broader equity market, PepsiCo's earnings beat was overshadowed by a downward revision in full-year guidance, highlighting the persistent pressure of inflation and weak consumer demand in North America. Meanwhile, Micron's record quarterly results underscore the continued strength in memory chip demand, contrasting with the broader macro headwinds.