- The U.S. session was dominated by concerns about the sustainability of profitability among AI companies. Sentiment was further weakened, so it seems, by the stalemate in negotiations between Iran and the U.S.
- Wall Street index futures are lower. NASDAQ 100 and the Russell 2000 are down the most, with declines exceeding 1%. The S&P 500 and the Dow are holding up better.
- The UAE officially announced its exit from the OPEC and OPEC+ cartels
- The Conference Board released consumer sentiment data, which unexpectedly rose to 92.8 versus expectations of 89.3.
- CNN reports that the average price per gallon of gasoline has increased to $4.18 - the highest level in four years.
- Information about disappointing OpenAI results has reached the public. One of the leaders of the AI race/revolution reportedly fell short in terms of revenue and user numbers. This triggered a wave of pessimism and concern across the broader market - the biggest declines are hitting companies most dependent on the firm’s success. CoreWeave and Oracle are down about 5%.
- Spotify posted strong results, but the market was disappointed by guidance for lower profits in Q2. The stock is down in the double digits.
- UPS is down more than 3% despite solid results, as investors are disappointed with the company’s conservative financial targets.
- Coca-Cola beat market expectations and raised its outlook for upcoming reporting periods. The stock is up more than 5%.
- General Motors delivered strong results, significantly beating expectations, but sentiment remained cool after the company materially raised its forecast for tariff-related costs. The shares ended the session near the opening price.
- Bed Bath & Beyond reported results - losses were much lower than expected. The stock initially surged more than 25%, then reversed and finished the session down about 7%.
- Sentiment on European exchanges was mixed and more moderate than in the U.S., though still skewed to the downside. The continent faces a range of questions and concerns, mainly tied to fuel prices. The pan-European EURO STOXX 50 fell about 0.4%.
- Spain saw a strong increase in retail sales as well as a rise in unemployment. Retail sales grew 4.1% year over year, while unemployment rose to above 10.8%.
- Airbus reported Q1 results. The company recorded a notable decline in revenue and profitability, but the stock is resisting declines as the firm kept its full-year guidance unchanged.
- In the near term, Europe’s jet fuel inventories may improve, according to the CEO of Ryanair.
- Germany’s Bayer is down more than 4%; the drop follows a U.S. court case related to pesticide use and its negative impact on health.
- In FX, Swiss franc losses stand out. CHF is down about 0.5% versus the major currency pairs. The move reflects a mix of profit-taking, speculation about SNB policy, and uncertainty amid ongoing trade wars.
- In agricultural commodities, wheat is rising the most—mainly on concerns about food production in the context of potential fertilizer availability issues.
- Oil prices are up about 2.5%. Brent is reaching $104, while WTI is above $100 per barrel.
- Declines dominate among metals. Aluminum and copper are down more than 1%, while silver and gold are down about 2%.
- In crypto, sentiment is mixed. Bitcoin and Solana are down just under 1%. Ethereum is showing limited volatility and remains around ~$2,280 USD.
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