Wall Street closed in the red across the board today as renewed hostilities in the Iran war rattled investor confidence and pushed energy prices sharply higher, erasing much of last week’s record-setting optimism.
THE CLOSING NUMBERS
The Dow Jones Industrial Average shed 557 points, or 1.13%, closing at 48,941.90. The S&P 500 slid 0.41% to end at 7,200.75, while the Nasdaq Composite lost 0.19% to settle at 25,067.80. The small-cap Russell 2000 fell 0.60% as volatility and Treasury yields climbed. CNBCTheStreet
THE WAR DOMINATES TRADING
The session was almost entirely shaped by events in the Persian Gulf. Markets slid into the red following reports that two Iranian strikes hit a U.S. patrol boat and that a U.S. warship was turned back in the Strait of Hormuz. Both sides denied each other’s claims, but the UAE confirmed that an oil carrier belonging to the Abu Dhabi National Oil Company and the Fujairah petroleum export complex had been struck by Iran. Yahoo Finance
The escalation came in direct response to a U.S. initiative. President Trump said the U.S. would start helping trapped ships navigate the Strait of Hormuz under a plan dubbed “Project Freedom,” and Iran warned it would take action against any U.S. ships approaching it. By mid-session, Israel and Bahrain had both issued alerts about a possible Iranian missile attack, with the Israeli Army put on high alert and Bahrain declaring a state of alert. Yahoo FinanceTheStreet
OIL AND BONDS GET HIT HARD
U.S. West Texas Intermediate crude futures rose 4.39% to settle at $106.42 per barrel, while international benchmark Brent crude futures surged 5.8% to end at $114.44. The 10-year Treasury yield jumped nearly 8 basis points on the day to 4.45%, dragging average 30-year mortgage rates back above 6.5%, their highest level in over a month. CNBCYahoo Finance
Of the eleven S&P 500 sectors, only Energy finished in positive territory, gaining 0.95%. Materials and Industrials led losses, falling 1.62% and 1.02%, respectively. Among large caps, Apple fell 1.2%, Alphabet dropped 0.9%, Broadcom slipped 1.1%, Walmart lost 1%, and JPMorgan declined 1.6%. On the Dow specifically, Home Depot, Nike, and Boeing were the hardest hit, falling 3.5%, 2.95%, and 2.64% respectively. TheStreet + 2
OTHER NOTABLE MOVERS
Norwegian Cruise Line sank 6.5% after reporting mixed earnings, beating on the bottom line but missing on revenue and guiding below consensus for the second quarter and full year, explicitly citing Middle East disruptions and high fuel prices. Charles Schwab
Berkshire Hathaway edged higher after beating earnings and revenue estimates. The company’s cash pile rose to nearly $397 billion and it bought back roughly $234 million in shares. This was the first Berkshire annual meeting led by CEO Greg Abel without Warren Buffett presiding, and by most accounts the transition was received warmly. Charles Schwab
PALANTIR AFTER THE BELL
The marquee after-hours event delivered a blowout. Palantir reported Q1 revenue of $1.63 billion against expectations of $1.54 billion, with adjusted EPS of 33 cents beating the 28-cent consensus. Revenue grew approximately 85% year-over-year, the fastest pace since the company went public in 2020. Net income roughly quadrupled to $870.5 million. The company raised its full-year revenue guidance to $7.65–$7.66 billion, well above the prior $7.27 billion consensus, and called for $1.8 billion in second-quarter revenue against a $1.68 billion estimate. CNBCCNBC
FUTURES
Shortly after 6 p.m. ET, S&P 500 and Nasdaq 100 futures both added 0.2%, and Dow futures rose 102 points, or 0.2%. Palantir’s blowout print is the primary catalyst lifting sentiment in early overnight trading. Whether that holds will likely depend on whether the Gulf news continues to deteriorate before tomorrow’s open. CNBC
LOOKING AHEAD
The week is heavy with earnings. AMD, Shopify, Pfizer, Ferrari, Walt Disney, and Airbnb are all on deck. Friday brings the April jobs report, which will take on added weight given the Federal Reserve’s stated need for further evidence of economic stability before considering rate cuts. Markets are currently pricing a 94.8% probability that the Fed holds rates unchanged at its June meeting. Benzinga
The broader backdrop entering Tuesday: a market that wants to hold onto record highs, a war that won’t let it.
This briefing is for informational purposes only and does not constitute investment advice.
