General Market News

The Federal Reserve is expected to hold interest rates steady at its Wednesday meeting, with Chair Jerome Powell likely leading what could be his final policy decision before his term ends in May. Stubborn inflation running at 3% and elevated energy prices near $100 per barrel are preventing rate cuts despite a resilient but weakening labor market. Markets are pricing in a 100% probability of no rate change, with attention focused on Powell's transition to designated successor Kevin Warsh.

• Inflation remains at 3% on a core basis, well above the Fed's 2% target for five consecutive years, with crude oil prices near $100/barrel complicating the outlook
• Kevin Warsh is expected to take over as Fed chair when Powell's term ends in May, reducing the significance of Powell's post-meeting guidance for future policy direction
• Powell has not confirmed whether he will remain as a Fed governor for the final two years of his term, citing an ongoing investigation into Fed headquarters renovations that was recently transferred from the Justice Department to the inspector general

Major U.S. companies including GM, Coca-Cola, and UPS are projecting resilience despite rising fuel and packaging costs stemming from the Iran war, which has driven oil prices sharply higher. While 24 firms have cut forecasts and many warn of financial hits, several executives expressed confidence in hedging strategies, locked-in contracts, and resilient demand to weather the disruption. Airlines remain the most exposed sector, with jet fuel prices nearly doubling since late February.

• A Reuters review found 24 companies withdrew or cut forecasts, 35 signaled price hikes, and 35 warned of financial impacts since the war began.
• Wall Street analysts raised Q1 S&P 500 earnings growth expectations to 16.1% from 14.3% pre-war, driven largely by tech and energy sectors.
• Airlines face the greatest risk with jet fuel prices nearly doubled since end-February, forcing carriers like JetBlue to cut capacity, slow hiring, and raise fares while managing pre-sold tickets.

The Federal Reserve is expected to hold interest rates steady at 3.5-3.75% at Wednesday's meeting, which may be Fed Chair Jerome Powell's final news conference before his term expires May 15. The Justice Department has dropped its investigation into Powell, clearing the path for Kevin Warsh's confirmation as the next Fed chair, potentially allowing him to assume the role by the June FOMC meeting.

• Powell's chairmanship ends May 15, though his Board of Governors term runs until January 2028, and he has not decided whether to remain as a governor after his chairmanship concludes
• Sen. Thom Tillis had vowed to block Warsh's confirmation until the DOJ investigation ended, viewing it as a threat to Fed independence; the case is now transferred to the Fed's inspector general
• Analysts suggest Powell may remain on the Board to provide 'institutional continuity' and serve as a 'stabilizing counterweight' during the transition to Warsh's leadership

The U.S. FDA launched a pilot program to monitor clinical trial data in real time, aiming to cut years from drug approval timelines by eliminating administrative delays. The initiative allows the FDA to access aggregated safety and efficacy signals from early-stage trials without waiting for companies to complete their own analysis. FDA Commissioner Marty Makary cited competition with China, which has led in Phase 1 trials since 2021, as a key driver for the program.

• Administrative tasks and paperwork currently consume 45% of the time from early drug testing to approval submission, creating 'dead time' the program aims to eliminate
• Initial pilots involve AstraZeneca's mantle cell lymphoma trial and Amgen's limited-stage small cell lung carcinoma study, with the FDA receiving only aggregated signals rather than raw patient data to preserve privacy
• The agency will accept public and industry comments until May 29, with final selection criteria expected in July and pilot selections completed in August

Major AI providers including GitHub and Anthropic are ending flat-rate subscription models and moving to usage-based billing, citing unsustainable infrastructure costs. GitHub Copilot will shift to credit-based pricing on June 1, 2026, while Anthropic now charges enterprise customers variable fees based on computing capacity used. The changes are expected to significantly increase costs for heavy users, with some estimates predicting bills will double or triple.

• GitHub Copilot maintains base prices ($10/month Pro, $19/month Business) but replaces unlimited usage with depleting credit balances starting June 1, 2026
• Anthropic's Claude Enterprise shifted from fixed $200/user/month to $20/user plus variable compute charges, potentially doubling or tripling costs for heavy users
• Enterprise finance teams face new forecasting challenges as AI costs now resemble utility bills based on activity rather than predictable headcount-based software subscriptions, with integration and compliance adding $5-$10 for every $1 spent on AI models

EU antitrust regulators opened an investigation into a proposed 1.42-billion-euro joint venture between Finnish forestry group UPM-Kymmene and South African wood fibre producer Sappi, warning the deal may reduce competition and lead to price hikes in Europe's paper market. The Commission raised concerns about the companies' combined market power in coated mechanical and wood free coated paper, with a decision expected by October 26.

• The joint venture would combine UPM's communication papers unit with Sappi's graphic paper business in Europe as the industry faces falling demand, overcapacity, and high energy costs
• EU regulators warn the deal could reduce production capacity and result in higher prices and lower quality paper for customers including printers and publishers
• The companies will likely need to offer concessions such as asset sales to address competition concerns and secure regulatory approval

The Magnificent 7 tech companies (Alphabet, Meta, Microsoft, Amazon, and Apple) are set to report Q1 2026 earnings this week, with investors focused on AI monetization capabilities. The S&P 500 is projected to achieve its sixth consecutive quarter of double-digit earnings growth at 15.1%, driven primarily by a 46% expansion in the Information Technology sector. Key concerns include whether AI investments in products like Microsoft's 365 Copilot and Google's Gemini are generating sufficient returns to justify massive capital expenditures.

• Early Q1 results show strong performance with 84% of S&P 500 companies beating EPS estimates and 81% beating revenue estimates, both above historical averages
• Wednesday, April 29 is the critical reporting day when Alphabet, Meta, Microsoft, and Amazon all release results, with AWS growth expected to exceed 20% for Amazon to prove competitiveness
• Economic headwinds include March retail sales jumping 1.7% (driven largely by 15.5% gasoline spike) and consumer sentiment dropping to 49.8, comparable to July 2022 lows, amid inflation concerns

Bert Dohmen of Dohmen Capital warns that stress in private credit markets signals broader liquidity tightening across the financial system, despite public equities trading near record highs. He argues markets entered a distribution phase in June 2025, with institutional investors reducing exposure while retail participants absorb risk. Dohmen characterizes current valuations as the highest in history, exceeding 1929 levels, and expects forced selling to pressure even defensive assets like gold before central bank intervention.

• Private credit markets face rising redemption requests colliding with illiquid assets, which Dohmen describes as 'the leader into the abyss' reflecting systemic liquidity deterioration
• Current market leverage is '5 to 10 times' prior cycles with valuations 'more overvalued than 1929,' creating conditions similar to pre-2008 crisis structures
• Expected forced selling will pressure liquid assets first including precious metals, followed by likely central bank 'bailout' through liquidity injections that reduce purchasing power over time

Markets are currently driven by four key factors: technology stock momentum (particularly semiconductors), bond yield movements, oil price levels, and underlying economic signals. Tech stocks can continue higher if consumer spending remains strong, while yields stay range-bound despite over $1 trillion in U.S. government interest payments creating potential pressure for Fed policy easing.

• Tech sector, especially semiconductors (SMH), is expected to see gently higher prices with normal pullbacks, conditional on consumer resilience as measured by retail sector (XRT) performance
• Oil (WTI) shows strength and is positioned to move higher as long as it holds above the critical $92 per barrel level, serving as both an energy and inflation signal
• Three key indicators to watch: VIX volatility index for risk assessment, XRT retail sector for consumer health, and TLT treasury bonds for safety-seeking behavior

The European Union plans to extend its Digital Markets Act (DMA), which currently regulates seven major tech companies including Alphabet, Amazon, Apple, and Microsoft, to cover cloud computing and artificial intelligence services. EU regulators reported positive results from the DMA since its May 2023 implementation and aim to make cloud and AI markets fairer and more competitive. The Commission is investigating whether Amazon and Microsoft should be designated as gatekeepers for their cloud services.

• The DMA currently targets seven 'gatekeepers' (Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta, and Microsoft) and has improved data portability and device interoperability since becoming applicable in May 2023
• Regulators are investigating whether certain AI services should be designated as virtual assistant core platform services and whether Amazon and Microsoft's cloud computing operations should fall under DMA gatekeeper rules
• The Commission ruled out forcing social networks to interoperate with each other, citing 'no clear demand' for such interoperability, and stated it has no plans to change gatekeeper designation criteria

JPMorgan Chase CEO Jamie Dimon identified stagflation as a worst-case economic scenario during a Norwegian sovereign wealth fund conference, citing inflationary pressures from geopolitical conflicts, global remilitarization, and U.S. deficits. While not currently worried about the U.S. economy, he highlighted cyber attacks and geopolitics as major risks.

• Dimon listed multiple inflationary factors including the Iran War, global remilitarization, infrastructure needs, and U.S. fiscal deficits as contributors to potential stagflation risk
• The JPMorgan CEO identified cyber attacks and geopolitical conflicts (Iran and Ukraine wars) as the two biggest current risks to the economy
• Dimon dismissed speculation about a presidential run, joking he would accept if 'anointed' but couldn't survive primaries and prefers his current role after two decades as CEO

Private equity firm CVC Capital is considering a 9 billion euro ($10.54 billion) bid for Italian payments group Nexi, according to a Financial Times report. This would mark CVC's third attempt to acquire Nexi, having previously explored takeover opportunities twice before. The deal, if pursued, would represent a major transaction in the European payments sector.

• CVC Capital has explored acquiring Nexi on two previous occasions before this potential third bid attempt
• The proposed deal is valued at 9 billion euros ($10.54 billion), representing a significant investment in Italy's payments infrastructure
• Reuters could not immediately verify the Financial Times report citing people familiar with the matter

The Case-Shiller Home Price Index for February showed muted growth at +0.9% for the 20-city composite, down 30 basis points month-over-month, as higher mortgage rates pressured pricing. Real home price returns have now been negative (rising slower than inflation) for nine consecutive months. Chicago and New York led price gains while Denver showed the weakest performance.

• The 20-city composite rose +0.9%, down 30 bps from the previous month, with higher mortgage rates dampening price growth
• Real home price returns have been negative for nine straight months, rising slower than the inflation rate
• Chicago (+5.0%) and New York (+4.7%) led price gains, while Denver (-2.2%) was the weakest market

JPMorgan Chase CEO Jamie Dimon warned that rising government debt levels globally and in the U.S. could trigger a bond market crisis if policymakers fail to act proactively. He urged governments to address fiscal imbalances before markets force a disruptive adjustment, citing geopolitical risks, oil prices, and widening deficits as compounding threats.

• Dimon stated 'there will be some kind of bond crisis' given current debt trajectories, though he expressed confidence the situation could be managed if addressed deliberately rather than reactively
• A bond crisis would likely involve sudden yield spikes and liquidity breakdowns, potentially requiring central bank intervention as buyers of last resort, similar to the 2022 UK gilt crisis
• Multiple risk factors are accumulating simultaneously, including geopolitics, oil price volatility, and government deficits, creating unpredictable potential for market stress

U.S. stocks declined on Tuesday, April 28, 2026, with the S&P 500 and Nasdaq pulling back from Monday's record highs. A Wall Street Journal report revealing OpenAI's revenue and user growth fell below internal expectations pressured tech stocks, while oil prices surging toward $100 per barrel added broader market concerns.

• Major chipmakers tumbled on OpenAI concerns: Nvidia fell over 2%, while Broadcom, AMD, and Intel each dropped around 4%, and Oracle lost roughly 5%
• WTI crude oil jumped 3% above $99 per barrel and Brent crude gained 2% above $110 as U.S.-Iran talks were called off with no meetings scheduled
• Major tech earnings loom this week with Alphabet, Amazon, Meta, and Microsoft reporting Wednesday and Apple on Thursday, creating heightened risk as both indices show potential weekly closing price reversal top patterns

US markets diverged on Tuesday as the Nasdaq fell over 1% on concerns about OpenAI missing user and revenue targets, while the Dow rose 110 points supported by non-tech stocks. Surging oil prices above $100 per barrel due to Iran tensions and disruptions in the Strait of Hormuz added further pressure to market sentiment.

• A Wall Street Journal report that OpenAI missed user and revenue targets triggered sharp selloffs in AI-linked stocks, with Nvidia down 2.9%, AMD down 4%, and Arm Holdings falling 7%
• Oil prices surged roughly 54% above pre-war levels, with Brent crude climbing above $111 per barrel and WTI above $100, driven by ongoing US-Iran tensions and Strait of Hormuz disruptions
• Five 'Magnificent Seven' tech companies including Alphabet, Amazon, Meta, Microsoft, and Apple are set to report earnings this week, with investors focused on whether results can justify elevated valuations amid macroeconomic uncertainties

European aluminium billet premiums have doubled to $1,100 per metric ton since war disrupted Middle East supply through the Strait of Hormuz, squeezing construction and transport sectors. The crisis intensified after Emirates Global Aluminium declared force majeure following an Iranian attack on its UAE smelter in late March. Benchmark LME aluminium prices are up 12% since U.S. and Israel launched strikes on Iran on February 28.

• Rotterdam aluminium extrusion billet premium surged from $530 to $1,100 per ton, while the physical premium for primary aluminium rose 63% to $585-625 per ton for May-June delivery
• Middle East produces 9% of global aluminium supply (7 million metric tons annually), with bulk shipping through Strait of Hormuz largely suspended for two months
• Supply tightening accelerated by Emirates Global Aluminium's force majeure declaration after Iranian attack damaged its smelter, plus suspension of deliveries from Sweden's Kubal (owned by Russia's Rusal) amid sanctions investigation

The United Arab Emirates announced it will exit OPEC and OPEC+ effective May 1, seeking greater flexibility in oil output decisions. This departure represents a stunning loss for the cartel, potentially weakening the group's influence and creating disarray in global energy markets as OPEC has traditionally presented a united front despite internal disagreements.

• UAE's exit from OPEC and OPEC+ takes effect May 1, ending its longstanding membership in the oil-producing cartel
• The departure could weaken OPEC's ability to control global oil production and maintain a unified stance on production quotas
• Internal tensions over geopolitics and production quota disagreements have strained OPEC unity despite the group's efforts to present cohesion

U.S. stock futures fell Tuesday as investors awaited a wave of corporate earnings and Fed policy decisions, while oil prices surged above $100 per barrel amid uncertainty over Iran peace talks and the closure of the Strait of Hormuz. The market pullback was amplified by a report that OpenAI missed internal revenue and user growth targets, pressuring tech stocks ahead of major earnings from Meta, Microsoft, Apple, and Amazon.

• WTI crude oil jumped 5.6% to $101.80 per barrel as Iran peace talks were delayed and the Strait of Hormuz remains closed, marking the first time above $100 in three weeks
• The Federal Reserve begins its two-day policy meeting today, likely Chair Jerome Powell's last before his term expires next month, with soaring fuel prices threatening both inflation control and employment goals
• Major tech stocks including Oracle and CoreWeave fell about 7% premarket after reports that OpenAI missed revenue targets and executives questioned its timeline to go public this year

EVelution Energy has signed an $850 million agreement with Japan's Mitsui to supply cobalt from its planned Arizona facility over five years. The deal supports U.S.-Japan efforts to strengthen critical mineral supply chains and reduce dependence on China. Construction is expected to begin in early 2027 and create over 3,300 jobs.

• EVelution will supply up to 3,000 metric tons of contained cobalt annually from its Yuma County, Arizona facility, with full capacity projected at 7,000 metric tons per year of cobalt sulfate and/or cobalt metal
• The facility construction is scheduled from early 2027 to end-2029 and will create more than 3,300 jobs in Yuma County
• This deal aligns with Japan's commitment to invest up to $73 billion in U.S. energy projects and develop alternatives to China for critical minerals used in EV batteries and advanced technologies