TL;DR

Israel strike prep lifts oil; S&P 500 drops; Wolfspeed bankruptcy, $WOLF -50% on AI demand fears.

Highlights

• US intelligence indicates Israel is preparing for a possible strike on Iranian nuclear sites; oil jumps 2%+ and S&P 500 futures slip 1.
• Panama-flagged, UAE-linked oil tanker hijacked near Iran, adding to Middle East energy risk 14.
• S&P 500 ends six-day winning streak, closing down 0.39% as tech leads decline 15.
• Wolfspeed to file for $6.5B bankruptcy despite $1B CHIPS Act funding; shares plunge 50% on AI/data center demand concerns 3.
• Palo Alto Networks beats Q3 estimates and raises Q4 EPS guidance, but shares fall 4% after-hours on margin disappointment 4.
• Take-Two drops 5% after $1B stock offering and GTA 6 delay to May 2026 5.
• Elon Musk plans to deploy 1 million Nvidia Blackwell AI chips at xAI; Tesla -xAI merger possible pending shareholder approval 6.
• Tesla to launch geofenced robotaxi service in Austin in June with 10 Model Y SUVs 10.
• Waymo surpasses 10M autonomous rides, outpaces Lyft in San Francisco; recalls 1,200 vehicles for minor collisions 13.
• Trump announces $230B spectrum auction to boost US tech and expand AI chip exports to Gulf states 2.
• Texas legislature passes bill to allow state investment in Bitcoin, pending governor’s signature 9.
• Senate unanimously passes No Tax on Tips Act, allowing up to $25,000 annual deduction for service workers; bill moves to House 11.
• US awaits Russian ceasefire proposal for Ukraine after Trump-Putin call; peace talks possible 12.
• Fortnite returns to US App Store after court ruling on third-party payments 7.

Commentary

Geopolitical risk is back in focus as US intelligence signals Israel is preparing for a potential strike on Iranian nuclear facilities 1. Oil markets reacted sharply, with crude up over 2% and further volatility possible after the hijacking of a UAE-linked tanker near Iran 14. These developments raise the risk of supply disruptions in the energy sector and contributed to a risk-off move in equities, with the S&P 500 snapping a six-day rally and futures pointing lower 115.

Tech sector sentiment remains fragile. Wolfspeed ’s imminent bankruptcy, despite $1B in CHIPS Act funding, highlights cracks in AI and data center demand, sending Wolfspeed down 50% and raising sector contagion concerns 3. Palo Alto Networks and Take-Two both beat or met expectations but saw shares drop after-hours—investors are punishing margin misses and product delays 45. Meanwhile, Musk’s plan to deploy 1 million Nvidia Blackwell chips at xAI and Tesla ’s upcoming robotaxi launch in Austin signal ongoing capital allocation to AI and autonomous vehicles, but execution risks remain, as seen with Waymo’s recall despite operational milestones 61013.

On the policy front, Trump’s $230B spectrum auction aims to boost US tech competitiveness and expand AI chip exports to the Gulf, reversing prior export restrictions 2. Texas’s move toward a state Bitcoin reserve and the Senate’s unanimous passage of the No Tax on Tips Act could impact crypto and consumer spending trends if enacted 911. The US is also awaiting a Russian ceasefire proposal for Ukraine, which could affect global risk sentiment 12.

Traders should watch oil and defense stocks for momentum on Middle East developments, monitor semiconductors and AI for further signs of demand softness, and track policy headlines for moves in crypto and consumer sectors. Volatility is likely to remain elevated as markets digest these cross-currents.