Middle East tensions and US sanctions push oil and rates up; tech sector sees selective rotation amid market volatility.

Geopolitical tensions in the Middle East, including Iran firing on ships and renewed US sanctions, have driven oil prices and interest rates higher. Despite broad market volatility, this appears to be a typical summer pullback. The technology sector is experiencing a rotation, with chip and hardware stocks declining while major tech companies like Microsoft, Amazon, Meta, and Google remain resilient. Economic indicators show modest improvement, supporting a positive macroeconomic outlook. The analyst remains cautious on technology overall but finds select top tech stocks increasingly attractive, anticipating a shift from AI infrastructure beneficiaries to spending companies.