WS #6327

The dominant narrative remains the Iran war and its impact on energy markets, with Strait of Hormuz shipping traffic plunging 90% and oil prices at multi-year highs. Multiple sources confirm the Pentagon has signed major AI contracts with SpaceX, OpenAI, Google, and NVIDIA for military applications, which is bullish for defense tech. Exxon and Chevron are refusing White House pressure to boost production, keeping supply tight. On the earnings front, Apple, Microsoft, Meta, and Google all reported strong quarters, with Google Cloud revenue surging 63% and Apple posting record March-quarter revenue. However, Apple warned of significantly higher memory costs ahead due to AI-driven demand. Chevron beat Q1 estimates on Hess acquisition synergies. Crown Castle completed its $8.5B asset sale and announced a $1B buyback. The Iran peace proposal via Pakistan remains a potential counter-signal to the oil crisis, but no concrete progress reported. Fed officials dissented on rate cut signal, suggesting hawkish tilt. Overall, the macro picture is mixed: energy crisis bullish for oil stocks but bearish for airlines and consumer, while tech earnings provide a bullish undercurrent.