**Market Summary** U.S. stock markets closed lower on April 29, with the Nasdaq Composite falling 0.9%. Technology stocks faced pressure due to OpenAI's slower-than-expected growth. Among the top 20 stocks by trading volume, OpenAI-related shares, including Nvidia, saw broad declines. Most popular U.S.-listed Chinese stocks fell on April 28, although Nio gained 2.17%, while TSMC dropped 3.16%. European equities closed lower on Tuesday, dragged down by both technology shares and rising oil prices. In commodities, oil prices climbed back above $110 per barrel, while gold and copper prices declined.
**Macro Developments** The U.S. Department of Defense has formally applied to rename itself the "Department of War." Iran may have submitted a modified negotiation proposal to Pakistan. The U.S. military reported that it has ordered 39 vessels to turn around during its blockade operation near an Iranian port. The United States announced sanctions against 35 Iranian-linked entities and individuals. The Iran conflict is reshaping global energy markets, prompting the UAE to announce its withdrawal from OPEC in May. Satellite imagery shows multiple tankers near Iran's Chabahar port. Iran reiterated its right to take measures to ensure the security of the Strait of Hormuz. An Iranian army spokesperson stated that the war is not over and that forces remain on high alert. Israel's Prime Minister said it will "take time" to end the threat from Hezbollah drones and has ordered a special operation to neutralize the threat from Lebanese drones. A senior EU trade official is reportedly set to resign due to dissatisfaction with a U.S.-EU trade agreement. The UK House of Commons rejected a motion to investigate the Prime Minister. A Japanese supertanker has successfully sailed through the Strait of Hormuz, potentially the first since the conflict began.
**Corporate News** The legal battle of the AI century has commenced, with Elon Musk testifying in the OpenAI trial. Reports indicate OpenAI's performance fell short of expectations, leading to a broad sell-off in related stocks. OpenAI dismissed the reports as clickbait, stating that all its business operations are running at full capacity. Apple is developing new AI tools for iOS 27, including a comprehensive redesign of photo editing features. OpenAI and Anthropic met with a U.S. House committee regarding advanced cybersecurity AI models. Google has signed an agreement with the U.S. Department of Defense, permitting the use of its AI systems for classified military work. Amazon has listed several new OpenAI products on AWS. According to The Information, OpenAI anticipates a significant shift of users to its more affordable ChatGPT plans. Starbucks reported revenue and profits that exceeded expectations and raised its full-year guidance. Citadel has reportedly received approval to begin operations in Dubai. General Motors raised its full-year profit guidance, citing a $500 million benefit from a Supreme Court tariff ruling. Prediction market platform Polymarket is seeking to open its services to U.S. users.
**Commentary** U.S.-Iran peace talks have reached a stalemate, contributing to a rise in U.S. Treasury yields. U.S. gasoline prices have climbed to their highest level in nearly four years. Consumers in the Eurozone are pessimistic about regional economic growth, while inflation expectations have risen significantly. European bond markets declined as traders increased bets on further interest rate hikes by the European Central Bank. The FCC has ordered an early review of licenses for eight ABC stations owned by Disney, reigniting tensions between former President Trump and the media. A Reuters analysis suggests the real battle for oil executives is a "terminal decline" in demand. Jamie Dimon warned of accumulating global debt risks, suggesting a future bond crisis may erupt. Amid a surge in chip stocks, notable investor Michael Burry's latest bets highlight growing concerns about a market melt-up. The World Bank predicts commodity prices will reach a four-year high by 2026.
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