WS #10746

The dominant signal in this window is the escalating tech selloff driven by AI cost concerns, with multiple sources corroborating that Apple and Microsoft have hiked prices due to surging chip costs, and US stock futures are declining as the AI trade falters. This is reinforced by Bloomberg reporting US stocks posting their first outflow since March and futures resuming declines. The Volkswagen report of up to 100,000 job cuts and factory shutdowns adds to negative sentiment in the auto sector. Meanwhile, the Strait of Hormuz disruption narrative continues with a drone strike reported in the region, but the Senate Iran war powers resolution from the previous window acts as a counter-signal, potentially capping oil upside. The Venezuela earthquake death toll has risen to 235, but this remains a humanitarian crisis with limited direct market impact. North Korea's major weapons tests and South Korea's 'drone warrior' training add geopolitical noise but are unlikely to move US markets directly. The ECB survey from the previous window is not reinforced by new data here, so it is carried forward as ongoing. The narrative arc for the tech selloff is ESCALATING, while the Hormuz situation is STABLE with the Senate resolution as a counter.