[Market Summary]
The New York stock market surged as investor sentiment was stimulated by the ceasefire agreement between the U.S. and Iran. International oil prices fell sharply.
On the 8th (local time), the Dow Jones Industrial Average rose 1,325.46 points (2.85%) to 40,909.92. This gain marks the largest single-day rise for the Dow since April of last year. The S&P 500 rose 165.96 points (2.51%) to 6,782.81, and the Nasdaq Composite increased by 617.15 points (2.80%) to 22,634.99.
The rally was driven by the news that the U.S. and Iran agreed to a 2-week ceasefire the previous day, which sparked a strong preference for risky assets. Both nations accepted a proposal from Pakistan for the pause in hostilities. President Donald Trump announced the agreement shortly before the negotiation deadline he had set. Iran also announced it would reopen the Strait of Hormuz for the 2-week period on the condition that all attacks cease.
International oil prices crashed by over 10%. Brent crude for June delivery fell $14.52 (13.29%) to $94.75 per barrel. WTI for May delivery dropped $18.54 (16.41%) to close at $94.41.
However, market volatility was partially capped as uncertainties regarding the passage of the Strait of Hormuz remain. Iran expressed intent to withdraw from the ceasefire due to Israeli attacks in Lebanon, and the Iranian Parliament Speaker claimed the U.S. had already violated the agreement. The U.S. maintains that the Lebanon situation was not part of the deal.
Bond yields fell as inflation fears subsided with lower oil prices. The 10-year Treasury yield dropped 5bp to 4.290%, and the 2-year yield fell 4bp to 3.792%.
According to the Fed’s March minutes released today, officials are increasingly open to rate hikes as the oil shock from the Middle East war raised inflation outlooks. While most still believe long-term cuts are appropriate, some suggested delaying the timing of those cuts.
Cryptocurrency prices rose, with Bitcoin up 2.9% to $71,339.09 and Ethereum up 4.6% to $2,211.78. The VIX (Fear Index) fell 18.39% to 21.04.
[Featured Stocks]
■ Meta Platforms (META)
Meta's new AI model powers its digital assistants across Facebook, Instagram, and WhatsApp. This is the first major output since the high-cost acquisition of Alexandr Wang from Scale AI, as Meta fights to regain momentum in the AI race.
■ Applied Materials (AMAT) & AMD (AMD)
Goldman Sachs reiterated a "Buy" for AMAT, citing potential earnings upgrades due to early capex in DRAM and Foundry. For AMD, they maintained a "Neutral" rating, expecting server CPU strength to offset PC weakness.
■ Aehr Test Systems (AEHR)
Reported Q3 revenue of $10.3M, missing the $10.8M estimate and down 44% year-over-year. However, adjusted EPS of -$0.05 was better than the expected -$0.07. Book-to-bill ratio remained strong at 3.5x.
■ Delta Air Lines (DAL)
Announced it will "meaningfully reduce" flight expansion plans due to high fuel costs from Middle East tensions. While Q1 earnings beat expectations (EPS $0.64 vs. $0.57), Q2 guidance was conservative at $1–$1.15 EPS, below the $1.52 estimate.
■ ExxonMobil (XOM)
Reported Q1 production disruptions in Qatar and the UAE due to facility issues, leading to a 6% drop in global output. Estimated losses from supply disruptions and failed financial hedges are between $600M and $800M.
UBS maintained a "Buy" rating, highlighting the value of Exxon’s helium segment (20% of global supply) as the outage in Qatar affects 30% of global helium capacity.
■ Micron Technology (MU)
UBS raised its price target to $535 from $510, maintaining a "Buy." They expect HBM to drive profitability and predict a DRAM supply shortage could last through 2028.
■ Phoenix Education Partners (PXED)
Beat estimates with an EPS of $0.58 and revenue of $222.5M. The company raised its annual guidance, focusing on job-ready digital credentials.
■ RPM International (RPM)
Reported a massive EPS beat ($0.57 vs. $0.35 estimate). Revenue rose 8.9% YoY to $1.61B, driven by volume growth in construction solutions and cost efficiencies.
■ Rigetti Computing (RGTI)
Officially launched its most powerful quantum computer, "Cepheus-1-108Q," available on its cloud platform and AWS Amazon Braket.
■ Coinbase (COIN)
Downgraded to "Underweight" by Barclays and "Market Perform" by Raymond James due to a sharp decline in retail trading volume.
■ Energy & Travel Sectors
Energy stocks (XOM, CVX, OXY, APA) fell on the ceasefire news and oil crash. Conversely, travel stocks (UAL, LUV, CCL, NCLH, EXPE) rose on improved demand outlooks.
■ Levi Strauss (LEVI)
Beat consensus and raised guidance due to an increasing share of Direct-to-Consumer (DTC) sales.
■ Newmont (NEM)
Gold prices surged as oil fell. Miners saw improved profit outlooks as precious metals gained strength. Markets expect an EPS of $2.02 for its upcoming report.
■ Super Micro Computer (SMCI)
Shares reacted positively to news of an internal investigation into allegations of chip smuggling to China, seen as a proactive risk management step.
■ Defense Sector
Underperformed significantly following the ceasefire. Analysts noted the sector was already overvalued after a 60% gain over the last 12 months.
■ Deere & Co. (DE)
Upgraded to "Hold" by Jefferies. While the company has high quality and innovation, macro headwinds like declining farm income and high debt burdens continue to weigh on equipment sales.
■ Unity Software (U)
Extended its partnership with Meta for VR platform development. Unity provides the tools for most top-selling VR content on Meta's devices.
■ Clean Harbors (CLH)
Upgraded to "Buy" by Citi. Analysts expect U.S. chemical production to increase to offset Middle East losses, benefiting CLH’s waste management business.
■ Freshpet (FRPT)
Upgraded to "Buy" by TD Cowen. Retail sales growth is outperforming guidance, and concerns over new competition at Costco and Walmart are viewed as overblown.
■ Broadcom (AVGO)
Gains were trimmed following concerns that Broadcom might intervene in funding data centers for customers like Anthropic.
■ Johnson & Johnson (JNJ)
TD Cowen maintained a $250 target, citing strong competitiveness in multiple myeloma, dermatology, and oncology markets.
■ Royal Caribbean (RCL)
JPM lowered its price target to $341 due to geopolitical headwinds affecting Eastern Europe bookings. However, the stock surged today due to falling WTI prices.
■ Robinhood (HOOD)
Selected as a primary brokerage for "Trump Accounts" (government-supported investment accounts for children). Analysts see this as a major long-term driver for acquiring young investors.
■ FedEx (FDX)
Its soon-to-be-spun-off unit, FedEx Freight, issued positive outlooks with an expected 12% operating margin for the year. The spin-off is set for June 1.
■ Kimberly-Clark (KMB)
Reported a large fire at a 3rd-party warehouse in Ontario, California. No injuries were reported; updates will be provided during the April 28 earnings call.
■ Chemicals & Aerospace
Chemical stocks (LYB, CF) saw profit-taking after the ceasefire. GE Aerospace (GE) rose on expectations of lower fuel costs boosting travel demand.
■ Freeport-McMoRan (FCX)
Copper prices jumped over 3% as global growth fears eased with the ceasefire. Analysts expect quarterly EPS to double year-over-year.
[After-Hours Headlines]
Costco (COST): March net sales reached $28.41B, up 11.3% YoY. Digital sales grew 23.3%.
Constellation Brands (STZ): Shares fell 1.5% after-hours. Despite beating Q4 EPS, the company withdrew its long-term 2028 guidance due to macro volatility.
Applied Digital (APLD): Rose 1% after beating EPS estimates ($0.09 vs. -$0.14 expected).
STAAR Surgical (STAA): Surged 20% on preliminary Q1 revenue of over $90M, well above the $67.2M estimate.
Forte Biosciences (FBRX): Fell 10% after announcing a common stock offering.
Nu Era Energy & Digital (NUAI): Surged 25% after securing a $290M credit facility for a Texas data center project.
