Important to Keep Watch Over Strait of Hormuz
“Today, we have the impression that the attention to results has been overshadowed by the rise in energy prices,” he told AFP.
The Concerning Strait of Hormuz
Oil prices continue to rise – Brent above $100 per barrel – due to “disappointment from the failure of the Strait of Hormuz reopening, combined with tense expectations for upcoming negotiations” between Washington and Tehran, according to Carsten Fritsch of Commerzbank.
Donald Trump stated Thursday that he has “all the time in the world” in the Middle East conflict.
US President Donald Trump on Thursday assured that he has “all the time in the world” in the Middle East conflict, where the ceasefire in place between Tehran and Washington for two weeks seems to hang by a thread.
Iranian media reported explosions in Tehran, and the Israeli defense minister said to be ready for war, although a security source in the country told AFP that the army was not attacking Iran.
Markets Affected by Energy and Rates
“Bond borrowing rates and oil remain at uncomfortably high levels,” notes Adam Turnquist of LPL Financial.
The ten-year yield of US government bonds, the benchmark rate, rose to 4.32% from 4.30% at the previous close.
Wall Street on edge: “Volatility here to stay”
According to Briefing.com analysts, the decline in stock indices should be put into perspective.
“The Nasdaq had risen 14.2% for the month before today’s session; it is therefore not an exaggeration to say it was vulnerable to some profit-taking,” they noted.
Texas Instruments Soars, ServiceNow Falls
Investors are closely watching the quarterly performance of companies, which have led to various movements.
Electronic components specialist Texas Instruments surged over 20% to $282.23.
With results exceeding expectations in the first three months of the year, the company expects its earnings per share this quarter to range from $1.77 to $2.05, compared to the analysts’ estimate of $1.57.
Briefing.com analysts see this as “general strength” and “new momentum” for Texas Instruments.
The return of oil to $100 revives market nervousness
Conversely, software developer ServiceNow (-17.59%, $84.94) struggled despite a 22% increase in first-quarter sales year-on-year. Its net income barely rose during the period, and the company cited “headwinds” from the Middle East, where war delayed the conclusion of some contracts.
As a result, Adobe lost 6.63% and Oracle 5.98%.
Tesla Penalized Despite Strong Finances
Despite better-than-expected results, electric vehicle specialist Tesla was penalized for its increasingly high expenditure outlook, estimated at $25 billion for this year, as earlier signaled.
By the end of the day, its shares fell by 3.56% to $373.72.
Market also Focused on Employment
As for indicators, weekly jobless claims slightly exceeded expectations, but “it must be acknowledged that demand remains very low compared to past standards,” according to Samuel Thombs of Pantheon Macroeconomics.
