Weekly Roundup: Iran War, $100 Oil, and the Fed Hike Nobody Wants
Geopolitics dominated the tape, but earnings surprises and rotation plays were hiding in plain sight
Ticker Ratings
| Ticker | Rating | Entry Price | Current | $ Gain | % Gain |
|---|---|---|---|---|---|
| JBS JBS N.V. | hold | $13.22 | — | — | — |
| TSN TYSON FOODS, INC. | buy | $60.68 | — | — | — |
| HRL HORMEL FOODS CORP /DE/ | hold | $26.08 | — | — | — |
| WDAY Workday, Inc. | buy | $147.75 | — | — | — |
| NVDA NVIDIA CORP | hold | $196.14 | — | — | — |
| AXP AMERICAN EXPRESS CO | buy | $336.16 | — | — | — |
| UHS UNIVERSAL HEALTH SERVICES INC | sell | $151.00 | — | — | — |
| META Meta Platforms, Inc. | buy | $595.74 | — | — | — |
| MSFT MICROSOFT CORP | buy | $389.50 | — | — | — |
If you blinked this week, you missed a war, a Fed scare, a meatpacker rally, and a semiconductor selloff. Let us catch you up.
The biggest story was obvious: 13 consecutive nights of US strikes on Iran dominated every headline and dominated every portfolio conversation. Brent crude hit $100 per barrel at its peak and WTI dropped nearly 8% in a single session when Trump paused strikes to allow diplomacy. That whipsaw in energy prices alone tells you everything about how binary this market is right now. The Strait of Hormuz, Houthi attacks on Saudi tankers in the Red Sea, and Ukraine hitting Russian refineries created a perfect storm for oil bulls. YouTube channels and X were flooded with carry-trade anxiety, with the Japanese yen falling to 40-year lows against the dollar adding a second geopolitical layer that most retail investors were not watching closely enough.
The Fed hike probability went from 13% to 34% in a single week, driven by oil spikes and a bond selloff that pushed the 10-year yield toward 4.72%. Tom Lee of Fundstrat went on CNBC to argue the hike odds are mostly a hedging artifact rather than a true signal, pointing to softening shelter costs and stable wages. He is probably right, but the market is not trading on "probably right" right now. It is trading on fear, and fear has a momentum of its own.
Away from the macro noise, some genuinely interesting sector rotations played out. Meatpacker stocks had one of the best single-session runs of the year after the US announced it would resume cattle imports from Mexico. $JBS surged over 10%, $TSN gained 5.6%, and $HRL was up nearly 3%. Meanwhile, application software quietly outperformed semiconductors, with $WDAY surging approximately 9% despite sitting 30% lower year-to-date and carrying a 14% short float. That kind of short-squeeze setup on a beaten-down software name is exactly what the rotation crowd was hunting for. The Philadelphia Semiconductor Index dropped more than 2% on the week, with $NVDA falling roughly 5% as AI capex enthusiasm collided with macro uncertainty.
On the earnings front, $AXP crushed Q2 with GAAP EPS of $4.53, revenue up 10% year-over-year to $19.64 billion, and return on equity at a staggering 34.4%. It raised full-year guidance. Nobody seemed to care, because oil was on fire. That is the week in a sentence. $UHS fell 5.3% after missing Q2 profit estimates and trimming full-year guidance, adding pressure to a hospital sector already worried about uninsured ER visits eating into margins.
The Mag 7 earnings gauntlet continues into next week, with Meta, Microsoft, Apple, and Amazon all reporting. Social sentiment data tracked on BullApe shows the highest chatter concentration around Meta and Microsoft, with both trading at 18-20x forward PE despite strong revenue growth. The bears will tell you AI capex is unsustainable at $725 billion projected hyperscaler spending. The bulls will tell you the earnings are there to back it up. One of them is about to find out they were wrong, live, on an earnings call.
This was not a week for clever trading. It was a week for surviving, staying alert, and noticing which stocks moved on real news versus which ones just got caught in the geopolitical crossfire. The difference between those two categories is where the next trade lives.