WS #10751

The dominant narrative is an escalating global tech selloff, now spreading to Asia with South Korea's KOSPI triggering an 8% circuit breaker, driven by AI de-risking and semiconductor weakness (Samsung, SK Hynix down 7-10%). This is corroborated by multiple sources: a Bloomberg headline 'AI is splitting tech stocks into winners and losers,' UBS trimming AI portfolio exposure to semis, and OpenAI IPO repricing (odds fell 73%→28%) hitting AI risk appetite. The selloff is broad-based with US equity futures down (Nasdaq -1%, S&P -0.4%) and Bitcoin bouncing from $58K but still under pressure. Countering the bearish tech narrative, Iran's IRGC Navy turned back three foreign tankers attempting 'unauthorized' passage of the Strait of Hormuz, escalating geopolitical risk and supporting oil prices. This counters the prior counter-signal of Saudi restarting loadings. Additionally, economists have scrapped chances of a Fed rate cut until well into 2027, with Core PCE at 3.4% reigniting rate hike fears, which further pressures growth stocks. On the positive side, Eli Lilly's Jaypirca received a positive CHMP opinion for CLL, and Apple's M7 chip fast-track is a long-term positive but not near-term. The European heatwave continues but is a slower-burn factor.