Khaberni - Global markets are experiencing cautious anticipation amid escalating geopolitical tensions and changes in energy prices, coinciding with strong business results from major companies that have reshaped investor trends in recent trading sessions.
The record rise seen in the U.S. stock market began to slow down on Monday, with increased uncertainty over the weekend regarding developments in the Iranian war, at a time when oil prices rose significantly.
The «Standard and Poor's 500» index experienced negligible change, after hitting a record level driven by strong earnings reports from American companies, and market optimism about avoiding the worst economic scenarios linked to tensions between the United States and Iran.
According to the Associated Press, the Dow Jones industrial average fell by about 7 points, less than 0.1%, by 10 a.m. Eastern Time, while the Nasdaq index fell by 0.2% after recording a new record level.
The oil market saw stronger movements, with prices rising by about 2%, amid the continued closure of the Strait of Hormuz to oil tankers, leading to large quantities of crude being detained away from global markets.
Over the weekend, U.S. President Donald Trump asked envoys not to head to Pakistan, which plays a mediation role, which was considered a signal of continuing pressure policy on Iran through the blockade.
The price of Brent crude for June delivery rose by 2.2% to reach $107.60 a barrel, while the most traded July contract increased by 2.3% to reach $101.38 a barrel.
Before the tensions erupted, Brent prices were around $70 per barrel, before temporarily jumping above $119 as war fears escalated.
On the corporate front, most major American companies announced first-quarter 2026 earnings that were higher than analysts' expectations, which helped support the «Standard and Poor’s 500» index, which increased by about 13% from its lowest levels in late March.
«Verizon's» stock rose by 4.1% after it achieved growth in the number of prepaid service subscribers for the first time since 2013, alongside raising its expectations for annual profit growth, despite recording revenues below expectations.
In contrast, «Domino's Pizza's» stock fell by 9.8% after announcing results below expectations in revenue and profits, putting pressure on market performance.
Major companies such as «Alphabet», «Amazon», «Meta», and «Microsoft» are expected to announce their results on Wednesday, while «Apple» will reveal its report on Thursday, in a crucial week for Wall Street markets.
In the bonds market, the yields of ten-year U.S. Treasury bonds stabilized at 4.31%, despite rising oil prices.
Federal Reserve Meeting
Investors are anticipating the Federal Reserve meeting on Wednesday, amid expectations that interest rates will remain unchanged, given inflation concerns linked to rising energy prices and trade tensions.
The upcoming meeting is expected to be the last chaired by Jerome Powell, as his term ends next month, amid nominations for potential successors by the U.S. administration.
Meanwhile, the European Central Bank, the Bank of Japan, and the Bank of England are preparing to announce their decisions on interest rates during this week.
Globally, European stock markets registered mixed performance, while Asian markets achieved strong gains, with the South Korean Kospi index rising by 2.2%, and the Japanese Nikkei index climbing by 1.4%, marking some of the most notable positive movements globally.
