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Market Snapshot

📉 Banana Bits

• Taiwan’s biggest ETF pulled in record inflows despite rising geopolitical risks.

• The dollar had its best month since July, shaking up FX expectations.

• Gold bounced back while oil slipped after Trump delayed the Iran deadline.

• Netflix raised prices again with a $2 monthly hike.

• Mortgage rates climbed to 6.49% amid war jitters, hitting housing sentiment.

• Treasury auctions saw weak demand, adding to bond market volatility.

• Investors are rotating back into cash, stepping away from stocks and bonds.

Market News

Markets React the Way You’d Expect

Stocks and bonds slipped while oil surged as doubts over a near-term U.S.-Iran ceasefire rattled markets.

The S&P 500 fell 1.7% to its lowest level since September, while Brent crude hovered around $108, driven by supply disruptions after Iran effectively closed the Strait of Hormuz. Higher energy prices reignited inflation fears, pushing Treasury prices lower and adding to the market’s risk-off mood.

Diplomatic progress remains uncertain. President Donald Trump refused to commit to a deal and threatened further military action after Iran rejected Washington’s proposal. While Tehran signaled willingness to negotiate through intermediaries, both sides remain far apart, prolonging tensions in the energy-rich region.

With Brent on track for its biggest monthly jump in years, markets appear stuck in a familiar wartime trade: oil up, risk assets down, and investors nervously refreshing the news feed every five minutes.

Corporate Highlights

Tech & AI

• Memory-chip stocks fell after Alphabet’s Google unveiled research on a new algorithm that could significantly reduce the storage requirements for AI development, potentially dampening demand for high-end memory hardware.

• Microsoft has reportedly paused new hiring across several divisions as the company tightens cost controls, according to The Information.

• Apple plans to open Siri to third-party AI assistants, signaling a major push to turn the iPhone into a broader AI platform ecosystem.

Retail & Consumer

• Macy’s launched an AI-powered shopping assistant, which has already boosted online spending among users as the retailer accelerates its digital transformation.

Travel

• Hertz and Avis shares rose as disruptions at U.S. airports caused by the partial government shutdown sparked speculation that more travelers may turn to rental cars.

Peel Take: Markets are behaving exactly how textbooks say they should during geopolitical shocks: energy prices surge, inflation fears rise, and risk assets wobble. Unless a credible ceasefire emerges or the Strait of Hormuz fully reopens, volatility is likely to remain the market’s favorite (and least appreciated) asset class.

What's Ripe

Olaplex Holdings Inc. (OLPX) 51.1%

• OLPX surged 51% after the hair-care brand agreed to be acquired by German conglomerate Henkel for $1.4 billion, with the deal expected to close in the second half of the year.

• Peel Take: The sharp rally reflects investors pricing in the takeover premium, while the deal highlights continued M&A appetite in the consumer and beauty sector as large incumbents acquire fast-growing brands to expand their portfolios

Navan Inc. (NAVN) 43.3%

• NAVN soared 43% after the business travel and expense management platform beat Wall Street expectations for fourth-quarter earnings and revenue, signaling stronger demand from corporate clients.

• Peel Take: The rally highlights how enterprise software tied to corporate travel and expense management is rebounding alongside business activity, with investors rewarding companies that deliver clear earnings momentum.

What's Rotten

Pony AI Inc. ADR (PONY) 14.7%

• PONY plunged 14.7% after Chinese robo-taxi company Pony.ai announced a partnership with Uber Technologies and autonomous driving firm Verne to expand into Europe, starting with a launch in Zagreb. The company also reported a wider third-quarter net loss, even as revenue jumped 72%.

• Peel Take: The drop suggests investors are focusing more on profitability than growth. While Pony.ai’s European expansion signals ambition in the autonomous-mobility race, widening losses highlight the high capital costs of scaling robo-taxi networks.

Sandisk Corp. (SNDK) 11.0%

• SNDK shares dropped 11% after Google unveiled TurboQuant, a new artificial intelligence compression algorithm. The technology reportedly reduces AI memory requirements by up to six times, raising concerns that future AI systems may need less high-end memory hardware.

• Peel Take: If AI models become significantly more memory-efficient, it could reshape demand expectations for memory-chip makers, which have been major beneficiaries of the AI boom. For now, the reaction reflects investor sensitivity to any development that might dent the AI infrastructure trade.

🧠 Technical Trip

Interview Q&A from Oliver Wyman

👉 Want 1-on-1 recruiting help from Oliver Wyman bankers & 2,000+ top mentors? Apply to WSO Academy

📚 Lesson from the Library

🎥 Venture Capital: From Idea to IPO

Discover how VCs pick winners, fund innovation, and turn bold ideas into billion-dollar exits.

🎓 Check out the Venture Capital Course

🌟 Student Spotlight

A+ Equity Research Report 📊

Looking for a stellar example of what makes an equity research report stand out?

One of our WSO Academy students put together an impressive deep dive on Amphenol, covering valuation, catalysts, and key risks with the kind of insight that turns good pitches into great ones.

Check out the report here

🌟 WSO Academy Q4 Update

🔁 Feeling Stuck After On-Cycle Recruiting?

If you’re feeling discouraged because the first wave of on-cycle recruiting has passed, don’t worry, this is extremely common. Many students secure internships through:

• Off-cycle recruiting later in the year

• Boutique investment banks

• Networking opportunities that arise throughout the semester

In other words, missing the first wave of recruiting does not mean you missed your opportunity.

The most important thing now is to continue building momentum by improving your resume, technical preparation, and networking strategy. Your mentors and the Academy team are here to help you navigate the next steps.

Apply to WSO Academy

🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

• Anthropic is eyeing an IPO as soon as October.

• Babylist is targeting an IPO next year with revenue nearing $1B.

• Shield AI raised $2B, pushing its valuation to $12.7B.

• A Coca-Cola bottler secured $2.6B to fund expansion in Africa.

📊The Daily Poll

Previous Poll:

Can AI and energy keep inflation structurally high long-term?

Yes, persistent: 24.7% // Partially: 32.1% // Temporary effect: 25.9% // Overstated risk: 17.3%

Student Success Corner

👉 Are you next? Find out with WSO Academy

Banana Brain Teaser

Previous

A store reported total sales of $385 million for February of this year. If the total sales for the same month last year were $320 million, approximately what was the percent increase in sales?

Answer: 20%

Today

Last year, 26 members of a certain club traveled to England, 26 to France, and 32 to Italy. Last year, no members of the club traveled to both England and France, 6 members traveled to both England and Italy, and 11 members traveled to both France and Italy. How many members of the club traveled to at least one of these three countries last year?

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit, Mitchell, Fernanda, & Patrick

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