Oil Surges Amid Middle East Risks

Market Overview - The stock market is experiencing significant declines, with the Dow down 600 points (-1.21%), S&P 500 down 66 points (-0.96%), Nasdaq down 272 points (-1.09%), and Russell 2000 down 42 points (-1.58%) [1] - The market is near historical highs, suggesting the current sell-off may be a "re-positioning" ahead of the weekend [2] Inflation Data - January's Producer Price Index (PPI) showed a month-over-month increase of +0.5%, exceeding expectations by 20 basis points and marking the highest increase since September [3] - Year-over-year headline PPI decreased slightly to +2.9%, while core PPI rose to +3.6%, the largest gain in nearly a year, indicating persistent inflation pressures [4] Oil Market - Increased U.S. military presence near Iran has raised concerns about Middle Eastern oil supply, particularly affecting the Strait of Hormuz [5] - Oil prices have risen by $2 per barrel to $67.70, the highest since July, reflecting geopolitical tensions [6] Corporate Developments - OpenAI has secured a $110 billion investment, raising its valuation to $730 billion, with Amazon contributing $50 billion and forming a multi-year partnership [7] - Paramount Skydance has successfully completed a hostile takeover of Warner Brothers Discovery for approximately $110 billion, following Netflix's withdrawal from a merger bid [8] - Block's shares increased by 16% after CEO Jack Dorsey announced layoffs affecting 4,000 employees, citing AI's capability to perform many tasks previously done by humans [9]