Global equity markets advanced on Tuesday, supported by softer-than-expected US producer price inflation and broadly positive first-quarter earnings from major financial firms. Investor sentiment was also buoyed by signs of potential renewed negotiations between the US and Iran, easing geopolitical concerns and reducing demand for safe-haven assets such as the US dollar.
In the United States, the S&P 500 rose 1.17% to close just below its record high, while the Dow Jones Industrial Average gained 0.66%. The Nasdaq Composite outperformed with a 1.95% increase, led by consumer discretionary and communication services. Energy underperformed as oil prices declined sharply.
Outside the US, equity markets also moved higher. Asian markets were led by a gain of more than 2% in Japan’s Nikkei, while European equities posted solid gains, with the STOXX 600 rising close to 1%. Despite ongoing geopolitical uncertainty and a more cautious global growth outlook from the IMF, equities have shown resilience, supported by stable economic conditions and strong corporate earnings expectations. However, elevated energy prices and interest rate uncertainty remain key risks for margins and valuations going forward.
Latest market and economic update
Asian equities rose on Wednesday, led by technology stocks. SK Hynix surged to a record high and Samsung Electronics advanced on strong AI-driven chip demand, while Japan’s Nikkei gained with support from SoftBank. Improved sentiment from easing US–Iran tensions and softer US inflation data helped lift regional markets more broadly.
US equity futures were little changed overnight, with S&P 500 and Dow futures flat, while Nasdaq 100 futures edged slightly higher. Investors remained focused on corporate earnings, with upcoming results from Bank of America, Morgan Stanley, and ASML expected to guide sentiment around economic and technology demand.
European markets rose, with the Stoxx 50 up over 1% to a six-week high on hopes of easing Middle East tensions after US signals on Iran talks. Gains were led by ASML, Siemens, Schneider Electric, Santander, and L’Oréal, while Linde and Shell declined as oil prices eased. The Stoxx 600 added 0.9%, boosted by Novo Nordisk and Nestlé.
The US dollar index traded near six-week lows around 98, as easing Middle East tensions reduced safe-haven demand, nearly erasing gains since the Iran conflict began. Markets are pricing in steady Federal Reserve rates, with cuts potentially delayed. EUR/USD is currently at 1.1787. Focus shifts to US data releases including inflation, manufacturing, and housing indicators.
Oil prices edged higher in Asian trading after the US confirmed a fully implemented naval blockade on Iran, raising supply disruption concerns. Brent and WTI posted gains as tensions around the Strait of Hormuz and uncertain diplomacy persisted. Meanwhile, the International Energy Agency sharply cut demand and supply forecasts, warning of major disruptions and Covid-era scale consumption declines.
Equities on the move
Technology and AI developments
Meta is expanding its partnership with Broadcom to develop multiple generations of custom AI chips through 2029, including over 1 gigawatt of computing capacity to support AI features across its apps. The deal reduces reliance on Nvidia and strengthens in-house chip design. Broadcom’s CEO will shift to an advisory role, and shares reacted modestly in after-hours trading.
Samsung Group shares surged after KKR announced a strategic partnership with Samsung SDS, investing 1.22 trillion won ($820m) via convertible bonds to support expansion into AI and digital transformation services. SDS shares jumped 21%, while Samsung Electronics rose over 4% and Samsung C&T gained nearly 5%, with funds supporting AI expansion plans.
Anthropic has reportedly attracted venture capital interest valuing the firm at up to $800 billion, near OpenAI’s latest valuation. The company, backed by Amazon and Alphabet, has seen rising demand for its Claude tools and expects $30 billion in annualised revenue, with investor enthusiasm increasing alongside new AI coding and agent capabilities.
Financial sector highlights
Citigroup’s first-quarter profit rose 42% to $5.8 billion as market volatility driven by geopolitical tensions boosted trading revenue and dealmaking activity. Revenue reached a decade-high $24.6 billion, with strong gains in equities and fixed income trading, while investment banking fees also rose. Net interest income increased 12%, and the bank exceeded its profitability targets for the quarter.
JPMorgan reported stronger-than-expected first-quarter revenue, driven by a 20% rise in trading income amid market volatility. Net income and advisory fees also increased solidly. However, CEO Jamie Dimon warned of growing economic risks, highlighting geopolitical tensions, energy volatility, and global uncertainty across markets overall.
Wells Fargo warned rising energy prices could weigh on the U.S. economy after reporting weaker-than-expected first-quarter revenue and net interest income, sending shares down 5%. CEO Charlie Scharf said consumers remain strong but face higher fuel costs. Revenue and NII missed estimates as margins tightened, though earnings beat forecasts and loan growth surged past $1 trillion.
Consumer and healthcare
Nike shares rose 2% after hours following insider buying by Apple CEO Tim Cook and Nike CEO Elliott Hill. Cook purchased 25,000 shares at about $42.43, while Hill bought 23,660 shares at $42.27, totalling roughly $2 million. Both executives increased their holdings, signalling confidence in Nike’s outlook.
Johnson & Johnson beat first-quarter expectations and raised its full-year outlook, driven by strong demand for Darzalex and Tremfya, which offset a sharp decline in Stelara sales due to biosimilar competition. Revenue rose nearly 10% to $24.1 billion, while EPS beat estimates. The company also lifted guidance despite concerns around US drug pricing policy.
Gucci sales fell 8% in Q1 as Kering reported weaker demand, hit by Middle East disruption and reduced travel linked to the Iran conflict. Middle East retail dropped 11%, marking Gucci’s 11th consecutive decline. However, overall group sales were flat. New CEO Luca de Meo is preparing a turnaround plan amid ongoing weak luxury demand.
Industrial and strategic developments
Amazon agreed to acquire satellite firm Globalstar in an $11.57 billion deal to expand its space-based internet ambitions and compete with SpaceX’s Starlink. Globalstar shareholders can choose cash or Amazon shares. The move supports Amazon’s planned 3,200-satellite network, though it still lags far behind Starlink’s scale and user base.
Brazilian firm CSN is preparing to receive binding offers for its cement unit within weeks as part of its debt reduction strategy. The asset could fetch over 10 billion reais, attracting interest from Brazilian, Chinese, and international bidders including Votorantim, J&F, and several cement groups. The process is expected to conclude by year-end pending approvals.
BP expects exceptional oil trading results in Q1 2026 after oil prices surged due to US-Israel military action against Iran and disruption in the Strait of Hormuz. Supply constraints lifted prices. Net debt is expected to rise to $25–27 billion from $22 billion due to a $4–7 billion working capital build. Output remains broadly flat as CEO Meg O’Neill leads a strategic shift.
Analyst ratings and market views
Citi turned bullish on US equities, upgrading them to Overweight on earnings, valuations, and tech-driven growth, while downgrading emerging markets to Neutral due to energy risks, inflation, and capital outflows. The bank also raised its EM index target while upgrading materials and downgrading communication services, citing shifting earnings momentum and sector divergence.
UBS upgraded Tesla to Neutral from Sell, maintaining its $352 price target. Analyst Joseph Spak highlighted weak EV demand, rising competition, and delays in robo-taxi and Optimus plans, but still sees long-term potential in physical AI despite high volatility and an uncertain near-term growth outlook.
Citi placed Alphabet on a 90-day upside Catalyst Watch, citing upcoming events including Google Cloud Next, Google I/O, and earnings. The bank highlighted strong AI-driven demand and healthy advertising trends, suggesting potential revenue and profit upside versus expectations.
Bank of America expects Apple to beat March-quarter earnings, forecasting revenue of $113 billion and EPS of $2.00 versus consensus of $109 billion and $1.93. iPhone 17 demand and FX are expected to support results, alongside upside catalysts from buybacks, dividends, and AI-driven product developments.
Evercore ISI initiated coverage of Sandisk with an Outperform rating and a $1,200 price target, calling it a structural AI beneficiary. The firm expects AI-driven NAND demand, tight supply, and stronger pricing to support earnings growth above $130 over time, alongside improving margins and rising data centre exposure.
Citi remains bullish on Adyen, maintaining a “buy” rating and a €1,800 target price, implying over 100% upside. It highlighted strong margins, cash flow, and innovation in embedded financial services, alongside stable merchant activity and resilience in e-commerce despite macro risks.
Outlook and upcoming events
The day ahead includes the Energy Information Administration’s weekly crude oil inventories report, offering insight into demand and inflation pressures. Several Federal Reserve officials will speak, alongside trade data releases and the Fed’s Beige Book.
Earnings from ASML, Bank of America, Morgan Stanley, Hermès, and Progressive are expected to provide further insight into economic conditions across technology, finance, and luxury sectors.
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