Market Update: Dow Jones Futures Rise Following Iran Attack
Iran’s Attack on Israel
Israeli, U.S., and allied forces successfully defended against Iran’s drone and missile attack, intercepting approximately 99% of the roughly 350 Iranian drones and missiles. Despite the attack, an Israeli military base suffered only minor damage. The attack was seen as a response to an Israeli strike on Iran’s consulate in Damascus on April 1, against which Iran suggested the matter has been concluded. The international community, including U.S. President Biden and the Group of Seven leaders, has condemned the attack and called for restraint and calm. In response, Israeli officials are currently evaluating their course of action, while the U.S. has made it clear that it will not engage in offensive action against Iran.
Dow Jones Futures Today
Dow Jones futures showed a modest 0.2% increase in value, while S&P 500 futures saw an advance of 0.25%, and Nasdaq 100 futures rose 0.3%.
Crude oil futures remained relatively stable. The 10-year Treasury yield climbed to 4.53%. Notably, the prices of copper, aluminum, and nickel experienced an increase due to new U.S. and U.K. sanctions against Russian metal-related industries. Bitcoin, on the other hand, rose above $65,000, albeit lower than its pre-attack levels around $67,000, witnessing a minor decrease of 5.1% on Friday.
Stock Market Update
Following fears of an Iran attack, the stock market experienced a downturn on Friday. The Nasdaq, despite initially achieving a record close on Thursday due to the rebound of megacap and AI stocks, fell for the week, just above the 21-day line but below the 50-day and 10-week lines. The S&P 500 and Dow Jones, similarly affected, both suffered larger weekly losses. The CBOE Volatility Index (VIX) rose to its highest levels since late October due to concerns surrounding Iran.
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Other News
Other important news includes the following:
- Tesla (TSLA) reduced the price of its Full Self-Driving subscriptions to $99 a month from $199 and, reportedly, temporarily halted Cybertruck deliveries.
- Salesforce.com (CRM) is currently in late-stage talks to acquire data-management software maker Informatica (INFA).
- Apple (AAPL) experienced a 9.6% decline in iPhone shipments for January to March, based on estimates from IDC.
Key Earnings Predictions
Noteworthy upcoming earnings reports include those from Goldman Sachs (GS) and Charles Schwab (SCHW) on early Monday. Earnings from ASML (ASML) and Taiwan Semiconductor (TSM) are also expected to greatly impact the chip sector. NVIDIA, Broadcom, Lam Research, Applied Materials, and KLA Corp, are all affected by these key earnings and guidance reports.
The current market conditions, including the recent rise in stock market fear gauge, suggest a cautious environment for investors. However, the outlook remains optimistic, provided that Mideast tensions ease and the upcoming earnings reports indicate positive outcomes. Industry leaders, together with chip stocks such as Nvidia, ASML, and Broadcom, are closely monitored, as their performance heavily influences the market. For investors, staying informed about earnings, investing in potential entry opportunities, and closely observing market trends are essential components of making well-informed investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please do your own research or consult a financial advisor before making investment decisions.
