4:20pm: Tech keeps momentum intact
Wall Street finished the session on a quietly constructive note, with the major benchmarks grinding higher as investors continued to balance steady earnings optimism against shifting geopolitical headlines.
The S&P 500 and Nasdaq both notched fresh record closes, extending their recent momentum in a session that felt more like incremental positioning than any decisive breakout. The Nasdaq added about 0.2%, while the S&P 500 edged up 0.1%, with strength in large-cap tech once again doing much of the heavy lifting beneath the surface.
The Dow, meanwhile, lagged slightly, slipping around 0.1% as gains in select industrials and financials weren’t quite enough to offset softer moves in other components.
One of the more noticeable cross-currents today came from the energy market. Oil prices inched higher, as traders continued to reassess the odds of a lasting easing in Middle East tensions, particularly around Iran.
3:40pm: Proactive news headlines
- 88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF, FRA:POQ) was highlighted by broker Cavendish for potentially massive upside, reiterating a Buy rating and a sharply higher target price tied to its Alaska-focused assets.
- Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) said extreme global oil supply disruptions, including reduced flows through the Strait of Hormuz, are significantly improving the economics of its M47 project in Türkiye.
- Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) raised C$12.2 million through an oversubscribed private placement to fund expanded drilling at its Cerro Caliche gold project in Mexico.
- Medicus Pharma (NASDAQ:MDCX) held meetings with US lawmakers to push for regulatory support for its SkinJect therapy targeting rare skin cancer-linked conditions.
- VivoPower PLC (NASDAQ:VIVO, FRA:51J) secured prequalification to supply flexible power load in Norway, unlocking a new revenue stream from grid balancing services.
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) reported expanded and continuous mineralization at its Québec project, including new drill intersections that extend the deposit footprint.
- AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) received a patient engagement award recognizing its collaboration with advocacy groups in psychedelic clinical research.
2:30pm: Market movers
- Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) rose after Bank of America reaffirmed its Buy rating, saying the chipmaker’s strong free cash flow and potential for higher dividends or buybacks could drive a major stock re-rating.
- POET Technologies Inc (TSX-V:PTK, NASDAQ:POET, FRA:RI4A) shares plunged after Marvell Technology, Inc. cancelled purchase orders linked to Celestial AI, citing alleged breaches of confidentiality obligations.
- Domino's Pizza Inc (NYSE:DPZ) missed first-quarter revenue and earnings expectations as weak consumer demand and tougher competition weighed on performance.
- Verizon Communications Inc (NYSE:VZ, XETRA:BAC) said it is pursuing multi-billion-dollar AI infrastructure opportunities by leveraging its fiber and 5G network assets, even as first-quarter revenue came in below analyst estimates.
1:35pm: Alphabet hits record high
Alphabet shares are up around 3% on Monday, hitting a new record high of more than $362.50.
“Previous suggestions that Alphabet would be the big loser from AI now seem to come from a parallel universe," said IG's Chris Beauchamp.
"The search engine giant has been the standout winner of the Magnificent 7, trouncing even Nvidia, and yet it shows no sign of slowing down ahead of its earnings. Having captured the AI fever with its latest Gemini model, it seems to have built itself a powerful moat to go with its formidable ad revenue capabilities.”
12:40pm: China blocks Meta AI deal
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has been dealt a significant blow in its pursuit to compete in the artificial intelligence race after China moved on Monday to block the social media giant's $2 billion acquisition of Manus, a Singaporean AI startup with Chinese roots.
Chinese regulators reviewed whether the deal violated Beijing's foreign investment rules before issuing the surprise decision, citing concerns over potential technology leakage to the US.
11:55am: Microsoft, OpenAI amend partnership
Microsoft Corp (NASDAQ:MSFT) and OpenAI (Unlisted:OPAI) have announced a sweeping overhaul of their partnership that strips away the exclusivity protections at the heart of their original agreement, giving the ChatGPT maker freedom to sell its products across any cloud provider, including rivals Amazon and Google.
The amended deal, announced Monday, ends Microsoft's revenue share payments to OpenAI entirely, while capping the payments OpenAI owes Microsoft through 2030 at a fixed ceiling independent of OpenAI's technology progress.
Microsoft's license to OpenAI's intellectual property will continue through 2032 but will no longer be exclusive.
Shares of Microsoft fell nearly 3% following the announcement before recovering to trade around 0.5% lower.
10:50am: Week ahead
Wall Street heads into one of the most consequential weeks of the year with a full plate: a historic wave of corporate earnings, a pivotal Federal Reserve meeting, and an unresolved geopolitical standoff in the Middle East all arriving at once.
Some 180 S&P 500 companies are scheduled to report this week, including five members of the Magnificent 7. The headliners arrive Wednesday evening, when Microsoft, Meta Platforms, Amazon, and Alphabet all report after the bell. Apple follows Thursday.
Wednesday also brings the Federal Reserve's latest rate decision — widely expected to result in no change — but the meeting carries symbolic weight as likely Jerome Powell's last as chair. The recent path has cleared for Kevin Warsh's confirmation as Powell's successor, reducing fears of a disruptive leadership standoff.
Cutting across all of it is the ongoing conflict involving Iran and the blockade of the Strait of Hormuz, now entering its third week.
10:00am: Muted start
US equity markets opened Monday little changed, with the Dow Jones Industrial Average at 49,217 and the S&P 500 at 7,164, while the Nasdaq edged slightly lower, off 0.2% to 24,785.
It's a cautious start to what promises to be a pivotal week. Weekend peace talks between the US and Iran failed to materialize in Pakistan, though Tehran has dangled the prospect of keeping the Strait of Hormuz open while pushing to delay nuclear negotiations — a development markets will be watching closely given the implications for global energy flows.
The real fireworks, however, may be reserved for Wednesday, when Federal Reserve Chair Jerome Powell presides over what is expected to be his final monetary policy meeting, and tech heavyweights Microsoft, Amazon, Meta and Alphabet all step into the earnings confessional on the same day.
In deal news, Beijing has blocked Meta's $2 billion bid to acquire Manus, the China-founded artificial intelligence platform. Elsewhere, India's Sun Pharmaceuticals has agreed to acquire drugmaker Organon & Co in an approximately $11.75 billion deal.
On the earnings front, Verizon Communications shares are up roughly 3% after the telecom giant reported subscriber additions, while Domino's Pizza is suffering an equally sized decline after profits fell short of expectations.
Bond market watchers have two auctions to monitor: the Treasury will announce results of a $69 billion two-year note sale at 11:30 a.m. Eastern, followed by a $70 billion five-year note auction at 1:00 p.m.
Swissquote Senior Analyst Ipek Ozkardeskaya notes that peace hopes and resilient earnings are keeping major markets in a bullish mood, even as consumer sentiment hit a record low in April on the back of rising energy prices, inflation worries, and affordability concerns.
“How long can equity markets and underlying economic health diverge?” Ozkardeskaya commented.
“Potentially for a while, as deteriorating fundamentals can also be seen as “good news” for markets: a weakening economy could encourage the central banks to ease policy (or not tighten much), which tends to support valuations.”
Ahead of the bell
Wall Street futures were little changed on Monday as Iran peace negotiations stalled and fresh Strait of Hormuz tensions pushed oil prices sharply higher, setting a cautious tone ahead of one of the most consequential weeks of the year.
S&P 500 futures hovered near the flat, Nasdaq-100 futures edged 0.2% higher, and Dow futures slipped almost 60 points as investors weighed geopolitical risk against a packed corporate calendar.
Donald Trump abandoned plans to send envoys Steve Witkoff and Jared Kushner to in-person ceasefire talks at the weekend, saying negotiations could happen by phone, while Iran's foreign ministry confirmed no meeting is currently scheduled.
Iran's Islamic Revolutionary Guard Corps then boarded two container ships near the Strait of Hormuz, the critical chokepoint through which a significant share of global crude flows, sending West Texas Intermediate up 2% to above $96 a barrel and Brent crude past $107.
An Axios report that Iran has submitted a new proposal for reopening the strait provided some relief, with Vital Knowledge analyst Adam Crisafulli saying the conflict remains on a path of de-escalation.
Five of the Magnificent Seven technology companies report results this week, alongside a Federal Reserve policy decision on Wednesday, which may be Jerome Powell's last as chair before Kevin Warsh takes over in May, following the Justice Department's decision to drop its criminal probe into Powell.