Wall Street higher, Trump warns Iran, ASX set to retreat
Natalia Kniazhevich
Wall Street pared back some of its earlier gains after President Donald Trump warned Tehran that it must strike a deal by a Tuesday night (Wednesday AEST) deadline or face a wider bombing campaign and said Iran could be “eliminated overnight”.
The S&P 500 rose 0.3 percent in late trading in New York, with eight of 11 industry groups advancing. Dow Jones rose 0.2 percent and Nasdaq rose 0.5 percent. Futures for the Australian stock market set on Friday indicate a 100-point, or 1.1 percent, decline at the opening.
Crude oil prices rose; international standard Brent rose 0.5 percent to $109.63 per barrel, while West Texas Intermediate rose 0.4 percent to $111.99 a barrel. The Organization of the Petroleum Exporting Countries (OPEC+) warned on Sunday that damage to Middle East energy infrastructure could have lasting effects on supply even after the conflict ends; The group approved a largely symbolic increase in production quotas for next month.
Trump stepped up his threats ahead of a deadline he set for Iran to reopen the Strait of Hormuz or face further attacks on civilian infrastructure; Tehran rejected the ceasefire offer.
“Compared to last week, S&P 500 Index options are pricing in more short-term volatility leading up to the Trump long weekend,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group.
Separately, investors digested weaker-than-expected economic data. The U.S. services economy grew at a slower pace in March as employment contracted by the most since 2023 and input prices rose sharply. The ISM services index fell 2.1 points to 54, driven by weak employment and slow growth in business activity.
According to Kevin Brocks, director of 22V Research, it is no surprise that the Iran war has negatively affected business sentiment. “There is little new news for the Fed,” he added.
U.S. stocks may have hit bottom, according to Morgan Stanley, which recommends increasing visibility, especially in cyclical sectors and high-quality growth names. “We believe the S&P 500 has reached a bottom and think it makes sense to start extending in cyclical and quality growth trades where earnings remain strong, valuation is compressed, and sentiment is negative,” strategists including Michael Wilson wrote in a note.
Attention now turns to upcoming economic data with the release of the March consumer price index on Friday. Economists expect a 1 percent monthly increase, marking the biggest gain since 2022, following a nearly $1 per gallon rise in oil prices tied to the Iran conflict.
In individual stocks, Carvana shares fell as much as 2.2 percent before paring losses after Bank of America analysts downgraded the online used car retailer to a buy rating to neutral, citing recent macroeconomic and industry developments. Soleno Therapeutics rose 32.43 percent after the Financial Times reported that Neurocrine Biosciences was in advanced talks to acquire the company. Seagate Technology shares gained 5.54 percent after Morgan Stanley increased its price target.
Nvidia partner Hon Hai Precision Industry, also known as Foxconn, reported a nearly 30 percent increase in quarterly sales, signaling continued strength in AI demand. Meanwhile, OpenAI’s chief operating officer is moving to a new role overseeing special projects and will report directly to chief executive officer Sam Altman.
Novo Nordisk’s chief executive officer says the weight-loss drug market is on a massive upswing and the industry should focus on expanding access. Finance Times. According to the Wall Street Journal, Paramount, Warner Bros. It is in talks to obtain signed equity commitments of around US$24 billion ($34.7 billion) from three sovereign wealth funds to support its acquisition of Discovery.
