WS #15806

Geopolitical tensions in the Middle East have escalated sharply, with Saudi Arabia launching air strikes on Yemen oil hubs and Houthis threatening retaliation against Riyadh. This escalation is driving a flight-to-safety and energy-supply shock dynamic, lifting Chevron to all-time highs while pressuring airlines and shipping. Concurrently, the US political landscape is shifting with the resignation of Ambassador Kimberly Guilfoyle and the appointment of Katie Zacharia as White House Press Secretary, adding a layer of domestic political volatility ahead of the midterms. In corporate news, Johnson & Johnson is tumbling 7% as it leans toward spinning out its orthopedic business and faces talc-related earnings impacts, while UnitedHealth raised its 2026 earnings outlook despite Medicare headwinds. The semiconductor sector is mixed: Applied Materials and Micron are selling off on demand concerns, but NVIDIA is expanding its footprint by buying a minority stake in France's Doctolib, signaling a pivot toward AI-integrated healthcare. Meanwhile, Apple is aggressively entering the smart home market with its HomeView launch, though regulatory hurdles in the EU remain a constraint.