By Martin Baccardax
U.S. stocks edged lower on Tuesday, mirroring moves in global crude markets and Treasury bond yields, as investors run into the third month of the Iran war while navigating a tricky market backdrop of big tech earnings and central bank meetings in major economies around the world.
Global oil prices extended their recent run of gains again Tuesday, with Brent crude rising past $111 a barrel in overnight dealing, the highest in three weeks, following reports that President Donald Trump remains skeptical of Iran's cease-fire plans and could offer a counter proposal over the coming days.
Brent crude futures for June, the global benchmark, were last trading 2.9% higher at $111.32 a barrel, while WTI contracts for the same month rose 3.7% to $99.89 barrel as traders bet that the Strait of Hormuz, which has been blocked from oil traffic for two consecutive months, would likely remain closed until at least the summer.
"Warnings over the severity of the global supply squeeze continue to intensify, with tightness in refined fuel markets already pushing diesel and jet fuel prices toward $200 per barrel," Saxo Bank strategists wrote on Tuesday.
"The market's immediate focus remains on mediation efforts, with a new Iranian proposal reportedly under consideration by the U.S. administration," the team added.
The surge in crude, which has added to food and energy transport costs and stoked inflation concerns in major economies around the world, was addressed in today's Bank of Japan policy decision, which held rates steady at 0.75% but indicated the likelihood of a hike in June and subsequent increases over the back half of the year.
The BoJ is the first of five major central banks expected to unveil interest rate decisions this week, with the Federal Reserve beginning its two day meeting later this morning and unveiling the last of its policy moves under current Chairman Jerome Powell Wednesday afternoon in Washington.
Stocks are under pressure on Wall Street in the meantime, however, as investors hit pause on the S&P 500's extraordinary April rally, the strongest in more than five years, ahead of a major slate of corporate earnings this week, including five of the so-called Magnificent Seven tech giants starting after the close of trading on Wednesday.
A Wall Street Journal report, meanwhile, suggested OpenAI has missed key internal revenue and user targets over the past few months, raising questions about the group's $600 billion in financing commitments ahead of its blockbuster IPO later in the year.
That's pressuring stocks on Tuesday, with the tech-focused Nasdaq called 155 points lower at the start of trading and the S&P 500 called 10 points south of last night's close.
Both benchmarks, however, are sitting on solid gains of around 15% and 10% for the month heading into this week's earnings and central bank cauldron, putting each on pace for their best monthly performance since the Covid pandemic.
"Tech investors have taken comfort in rising earnings estimates that have toned down talk of a bubble by keeping price to earnings multiples in check even as stock prices climbed," said Dennis Follmer, chief investment officer at Montis Financial in Waltham, MA.
"But any disappointing news from a Mag 7 company on Wednesday might just remind investors that there are still serious threats to the rosy future they have priced in," he added.
Will it be a case of rose meet thorn?
Write to Martin Baccardax at martin.baccardax@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 28, 2026 14:42 ET (18:42 GMT)
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