## MARKET MOOD: RISK-OFF
Markets are retreating amid escalating geopolitical tensions following U.S. and Israeli strikes on Iran, fueling risk aversion. The banking sector selloff and AI-related economic disruption fears add to the cautious tone, pressuring major indices lower overnight.
## TOP 5 HEADLINES
1. U.S. and Israel launch strikes on Iran → Impact: Heightened geopolitical risk spurs safe-haven buying and market volatility.
2. Banking sector selloff deepens amid AI-driven economic concerns → Impact: Financial stocks under pressure, dragging broader market.
3. Dell Technologies surges 21.5% on earnings blowout → Impact: Rare tech bright spot amid sector weakness.
4. Netflix jumps nearly 13% after backing out of Warner Bros. deal → Impact: Positive catalyst for streaming and media stocks.
5. CME Group to launch 24/7 regulated cryptocurrency trading → Impact: Potential growth driver for CME’s product suite.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**$DELL** - Earnings blowout and dividend hike spark 21.5% rally
**$NFLX** - Withdraws from Warner Bros. deal, shares +12.98%
**$APA** - Energy sector strength amid rising oil prices (+4.57%)
**$MDLZ** - Solid earnings lift shares +2.72%
**$XLV** (Healthcare ETF) - Sector up 1.77% on defensive buying
**$XLE** (Energy ETF) - Gains 1.58% as oil surges
### Shorts (Bearish Catalysts)
**$AIZ** - Insurance stock down slightly amid sector pressure
**$AMP** - Shares down 3.46% on insider selling news
**$JPM** - Banking selloff weighs, shares down 2.02%
**$MS** - Morgan Stanley down 6.20% amid financial sector weakness
**$WFC** - Wells Fargo down 5.80%, dragged by sector rout
**$KTOS** - Defense stock down 5.60%, geopolitical uncertainty
## INDEX BIAS
**SPY:** BEARISH - Down 0.48% with financials and tech weakness offsetting energy and healthcare gains.
**QQQ:** BEARISH - Tech-heavy Nasdaq 100 down 0.63%, pressured by AI fears and sector rotation.
**IWM:** BEARISH - Russell 2000 down 1.72%, small caps hit hardest amid risk-off sentiment.
## SECTORS
**Favor:** Energy - Rising oil prices (+2.73%) support XLE and energy-related stocks like **$APA** and **$OLN**.
**Avoid:** Financials - Banking selloff deepens with XLF down 2.04%, dragging names like **$JPM**, **$MS**, and **$WFC** lower.
## CATALYST WATCH
Events today that could move markets:
- 08:30 ET: February Non-Farm Payrolls Preview - Labor market stability is key amid economic uncertainty.
- 09:30 ET: Earnings from Sociedad Quimica Y Minera de Chile (SQM) - Watch for lithium demand outlook.
## BOTTOM LINE
**Today's Play:** Selective
Geopolitical tensions with Iran and a banking sector rout are driving a risk-off mood, pressuring broad markets and small caps. Energy and healthcare sectors offer defensive strength, while tech remains under pressure despite standout earnings from **$DELL** and **$NFLX**. Traders should be selective, focusing on quality names with clear catalysts and avoid financials and vulnerable tech stocks. Watch for labor market data and earnings previews for fresh directional cues.
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