Markets U.S. stock markets closed on April 18 with the S&P 500 finishing above 7,100 points for the first time, while the Nasdaq recorded its longest winning streak since 1992. Among the top 20 stocks by trading volume on April 18, BNP Paribas significantly raised its price target for Apple to $300. Popular U.S.-listed Chinese stocks were mixed: UMC rose 9.79%, while Hesai Technology fell 5.26%. Falling oil prices and increasing expectations for interest rate cuts pushed U.S. Treasury yields down to 4.24%. Precious metals closed higher across the board, with silver leading this week's gains. European stocks rose for a fourth consecutive week as the reopening of the Strait of Hormuz boosted market sentiment.
Macro Former President Donald Trump stated that the U.S. will continue talks with Iran over the weekend, suggesting positive developments are possible. Trump indicated that Witkoff and Kushner will participate in the Iran negotiations. Trump clarified that the removal of enriched uranium would not involve U.S. troops, while Iran has refused to ship its enriched uranium abroad. Informed sources suggest the next round of U.S.-Iran talks could resume as early as the 20th. Iran's Parliament Speaker declared Iran will never relinquish control of the Strait of Hormuz, stating that U.S. threats to destroy Iranian civilization have failed. Hundreds of pro-Trump fake profiles have appeared on social media, with AI deepfakes suspected to be behind them. Trump is seeking more time to respond to a lawsuit concerning the leak of $10 billion in tax records. Threats of conflict with Iran impacting fuel supplies have prompted the EU to promote diversification of aviation fuel sources. The Iran conflict is driving up global fertilizer prices, with U.S. buyers turning to overseas re-exports for profit. An Iranian Foreign Ministry spokesperson reiterated Iran's refusal to ship enriched uranium abroad. European leaders have proposed military assistance to ensure the security of the Strait of Hormuz, despite Trump's warning to "stay away." An Iranian official stated that Iran and the U.S. are drafting a memorandum of understanding to establish a framework for a permanent peace agreement. Lebanon's President said the country is making its own decisions for the first time in nearly half a century. Trump told CBS that the U.S. and Iran will meet this weekend. U.S. Central Command stated that American forces continue to "monitor every Iranian port closely." Trump claimed Iran will indefinitely suspend its nuclear program and will not receive its frozen funds. Iran's Islamic Revolutionary Guard Corps stated that military vessels remain banned from passing through the Strait of Hormuz. Turkey's President Erdogan said Gulf states' right of access to international waters should not be restricted. Following a ceasefire taking effect, Israel has lifted nationwide control measures.
Corporate Reports indicate Meta plans layoffs affecting approximately 10% of its global workforce on May 20. Obesity drugmaker Kailera Therapeutics raised $625 million in its IPO, surging 63% on its first trading day. The White House and Anthropic have reconciled, with the U.S. government planning to promote the adoption of the Mythos model. The lead creative brothers of the band Imagine Dragons have ventured into gaming, with their new 5v5 shooter "Ultimate Flag Order" officially launching. Amid surging power demand from AI, a nuclear energy startup plans to build a new reactor in South Carolina. Palantir, Thales, and other companies are bidding for a new AI tool contract with the U.S. Federal Aviation Administration. AI programming star Cursor is negotiating a $2 billion funding round, with Nvidia considering participation. Soaring fuel prices have led Air Canada to cut four routes from New York. Petrobras and Ecopetrol expect test results from the Copoazú-1 deepwater well by the end of June. Belgian pharmaceutical company UCB is acquiring Neurona Therapeutics for up to $1.15 billion. A major investment bank made significant adjustments to its Apple price target. Netflix faced selling pressure, potentially opening a buying opportunity. Lumina Metals is targeting an IPO to raise CAD 343.7 million, with a maximum valuation of CAD 1.4 billion. Despite widespread rumors of a Ryzen comeback, AMD's stock price saw a slight decline. Bernstein issued a clear signal regarding Nvidia's Vera Rubin chip, suggesting the next generation could deliver a fivefold performance increase. Activist investors are reportedly targeting digital payments company PayPal. Intel's stock surged to its highest level since 2000, reflecting market optimism about its turnaround plan. The parent company of QVC has filed for bankruptcy protection. Condiment giant McCormick is preparing for a battle for shelf space in the sauce aisle. Reports indicate DeepSeek is seeking funding at a valuation exceeding $10 billion.
Commentary Japan's Finance Minister stated the yen's rise following the Strait of Hormuz reopening announcement was expected. European Central Bank Governing Council member Kazaks said the next interest rate move is not necessarily a hike. ECB Governing Council member Kocher warned against preemptive rate actions due to uncertainty. San Francisco Fed President Mary Daly believes interest rates are in a good place. Driven by AI, IBM is expected to report a strong quarterly earnings. IMF member states warned that Middle East conflict poses a serious threat to the global economy. Fed Governor Waller expressed caution regarding interest rate adjustments, highlighting long-term conflict risks. Eli Lilly's CEO anticipates peak penetration for weight-loss drugs could reach around half of the potentially eligible population. Daly suggested that while some may have their own plans for the Fed, the economic situation may require a different response. ECB President Christine Lagarde stated that risks to the inflation outlook are tilted to the upside. The Bank of England's Chief Economist argued that a wait-and-see approach is not the correct response to the Iran conflict. A Pimco executive stated the current environment is a good time to buy municipal bonds. Wells Fargo advised investors to remain cautious following the reopening of the Strait of Hormuz. Luxury goods earnings reports reveal the broad impact of the Middle East conflict.
