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🇺🇸 U.S. Markets Stay Muted as Geopolitical Risks Rise U.S. equities remained relatively subdued after Trump officials signaled potential economic isolation and a port blockade of Iran. Meanwhile, the 10-year Treasury yield climbed 1.6 bps to 4.66%, while Brent crude rose 0.7% to around $88/bbl. Chip stocks continued to lead in Asia. SK Hynix and Samsung surged again on renewed AI-driven demand, helping push the KOSPI roughly 31% above its end-of-July level. 📊 S&P 500 Valuation Watch 2026 S&P 500 EPS estimates have risen to around $361, representing approximately 30% YoY growth, supported by strength in AI and energy. At current levels, that implies roughly: • 21.4x forward P/E • 4.7% earnings yield • Earnings yield now roughly matching the 10-year Treasury yield That’s notable because equities would normally be expected to offer a 50–100 bp premium over Treasuries. The current relationship is also reminiscent of valuation conditions seen in early 2024—and, further back, during the 2000 Internet bubble. ⚠️ Still Cautious on $TSLA I remain cautious on Tesla given declining longer-term earnings estimates, the potential commoditization of unsupervised autonomous driving, and its elevated valuation. At roughly 195x 2026 earnings versus around 35% expected forward EPS growth, the stock leaves very little room for disappointment. Overall, AI and energy remain powerful earnings drivers, but valuation, Treasury yields, and geopolitical risk are becoming increasingly important factors for the next leg of the market. $TSLA #CPIPPIEaseFedSplit #SP500Nears8000