WS #6052

The dominant market narrative remains the Iran-US conflict, with stalled negotiations and no de-escalation. Talks in Pakistan have collapsed, with Iran making new proposals including demands for lifting the US naval blockade and new rules for the Strait of Hormuz, while the US canceled a planned envoy trip. This continues to drive oil prices higher, with Brent above $100 and WTI near $93, benefiting energy stocks while pressuring airlines and consumer sectors. Separately, a significant development in AI: DeepSeek has launched a preview of its V4 model adapted for Huawei's Ascend chips, marking a major step in China's AI self-sufficiency and directly challenging Nvidia's dominance in the Chinese market. This could pressure NVDA as export controls risk losing the Chinese developer ecosystem. Additionally, Trump stated the investigation into Fed Chair Powell is not closed, despite DOJ dropping the case, adding uncertainty around the Fed transition. The previous high-significance development regarding the Iran conflict and oil price surge is carried forward as it remains unresolved and continues to drive market dynamics.