Wall Street joined a global sell-off on Monday as the U.S.-Israel military conflict with Iran entered its third day, sending crude oil prices surging and rattling investor sentiment worldwide.
The Dow Jones Industrial Average dropped 488 points (1%) to 48,489 at the open, the S&P 500 fell 1%, and the Nasdaq Composite slipped 1.53%. European and Asian markets posted similar declines, with the DAX down 2.4% and the Hang Seng off 2.1%.
West Texas Intermediate crude jumped 6.6% to $71.60/barrel—its highest since June 2025—as Iran warned vessels away from the Strait of Hormuz, through which more than 20% of global oil supply passes. Analysts at City Index warned WTI could reach $80–$90 if the Strait remains blocked.
Sovereign bonds sold off sharply, with U.S. 10-year Treasury yields rising 8 basis points on fears that elevated energy costs could reignite inflation.
Sources: The Guardian, Stock Market Watch
Photonics · AI Infrastructure
NVIDIA Pours $4B Into Lumentum & Coherent; Photonics Stocks Explode
NVIDIA announced a $4 billion strategic investment into photonics leaders Lumentum (LITE) and Coherent (COHR), sending the entire optical networking sector parabolic on Monday.
AAOI surged 24.5% to $104.90 after rocketing 57% on Friday, fueled by a short squeeze, blowout Q4 earnings, and $1B+ revenue guidance for 2026. The company forecasted a $4.5B annual revenue run rate by mid-2027.
COHR jumped 13.3% to $293.36 and LITE gained 6.9% to $749.05 on the NVIDIA deal news. AXTI climbed 2.1% to $37.90 as the substrate supplier benefits from industry demand.
Rosenblatt raised its AAOI price target from $50 to $125, calling the demand trajectory "unprecedented."
Sources: 24/7 Wall St., Yahoo Finance, Yahoo Finance
SPAC · Quantum Computing
SEC Clears Xanadu–Crane Harbor Merger; Analyst Day Set for March 4
The SEC declared effective the registration statement for the $3.1 billion Xanadu-Crane Harbor (CHAC) business combination, removing the final major regulatory hurdle before a shareholder vote.
CHAC trades at $10.35, holding near trust value as the merger is expected to close in Q1 2026. Xanadu has nominated four board directors, including a former DoD tech chief. An analyst day is scheduled for Tuesday, March 4.
Xanadu also received up to $23M from Canada's new Quantum Champions Program in December, bolstering its pre-merger balance sheet.
Sources: Investing.com, Stock Titan