Global Markets Update: Earnings Focus Amid Geopolitical Tensions and Rising Inflation Risks

index Update
U.S. Equity markets closed on a mixed note on Monday, with the S&P 500 (+0.1%) and Nasdaq (+0.2%) reaching record highs, while the Dow Jones Industrial Average declined by 63 points. Investor attention is increasingly centered on a key week of Earnings from major technology companies, including Apple, Microsoft, Amazon, Alphabet, and Meta, alongside upcoming Central Bank policy decisions. Ongoing geopolitical tensions between the U.S. and Iran, coupled with rising oil prices, remain critical market drivers. Sector performance was led by communication services, financials, and technology, supported by gains in Nvidia, Alphabet, and Micron, while Apple weighed on sentiment and consumer staples underperformed.

Market Movers
Among individual stocks, High-Trend International Group recorded the strongest gains, surging 239.73%, followed by Youxin Technology Ltd Incorporated, which rose 149.62%. On the downside, Lakewood-Amedex Biotherapeutics Inc. declined 50.20%, while POET Technologies Inc. dropped 47.35%, making them the session’s largest laggards.

Commodities Update
Crude Oil prices moved sharply higher, with Brent Crude surpassing USD 111 per barrel and WTI rising above USD 98, driven by prolonged U.S.–Iran tensions and stalled negotiations over reopening the Strait of Hormuz. The conflict, now in its ninth week, has significantly disrupted global energy Supply, particularly as the Strait—accounting for roughly 20% of global consumption—remains largely inactive. Market sentiment remains cautious as the U.S. expresses dissatisfaction with Iran’s latest proposal, while the International Energy Agency has warned of a potential Supply shock and rising Demand risks.
Meanwhile, precious metals declined, with gold falling toward USD 4,600 per ounce and silver dropping below USD 74. The decline reflects easing safe-haven Demand amid diplomatic efforts, alongside rising Inflation concerns that could keep global interest rates elevated, reducing the attractiveness of non-yielding Assets.

Macro Updates
The U.S. dollar strengthened, with the dollar index rising to around 98.7, nearing a three-week high. The move was supported by geopolitical uncertainty and higher oil prices, which have reignited Inflation concerns. Investors remain focused on developments surrounding Iran’s proposal to reopen the Strait of Hormuz, as well as upcoming Central Bank meetings. The Federal Reserve is expected to maintain its current policy stance, while the European Central Bank and the Bank of England may consider rate hikes as early as June. In contrast, the Bank of Japan held rates steady and provided limited forward guidance, putting pressure on the yen and supporting the dollar against major currencies.

Bonds Commentary
The Yield on the U.S. 10-year Treasury note increased to approximately 4.35%, marking its highest level in about a month. The rise reflects persistent geopolitical tensions and higher oil prices, which have revived inflationary concerns. Market Participants are closely monitoring developments in the Middle East and Central Bank policy signals. While the Federal Reserve is expected to keep rates unchanged in the near term, the ECB and BoE may move toward tightening, while the Bank of Japan continues to adopt a cautious stance.

Futures Update
U.S. stock futures were mixed on Tuesday, as investors assessed Iran’s latest peace proposal and prepared for upcoming corporate Earnings. Dow futures moved higher, while S&P 500 and Nasdaq 100 futures declined. This follows a mixed performance in the previous session, where gains in the S&P 500 and Nasdaq contrasted with a decline in the Dow Jones.

After the strong momentum seen last Friday, stocks delivered a more subdued performance on Monday. The major indices fluctuated around the flat line throughout the session, ultimately ending with a mixed close. The Nasdaq managed to gain 50.50 points, while the S&P 500 edged up 8.85 points, or 0.12%, to settle at 7,173.92. From a technical perspective, the index has moved above an important resistance level, suggesting potential for further upside. However, the 14-day RSI remains in overbought territory, indicating a need for caution as momentum could slow or shift into a consolidation phase. In the near term, resistance is likely around 7,250, while support is seen near 6,980.