Latest Business News
S&P 500 Nears Record High on Rally Fueled by Lower Oil Prices
U.S. stocks are approaching a record after a weeks-long rally driven by hopes of avoiding economic worst-case from the U.S.-Iran war and declining oil prices. The S&P 500 rose 0.8%, set to surpass its January high after recovering from a 10% correction. Bank of America and Morgan Stanley reported better-than-expected Q1 profits, boosting shares.
Asian Shares Mostly Rise Following Wall Street Gains
Asian markets advanced with South Korea’s KOSPI up 2.07%, India’s Nifty 50 up 1.69%, and Japan’s Nikkei 225 up 0.44%. This follows Wall Street's rally on lower oil prices amid U.S.-Iran tensions.
European stocks remained flat as investors await Gulf developments.
Bank of America Reports $8.6 Billion Q1 Profit
Bank of America earned $8.6 billion in the first quarter, up 17% year-over-year, exceeding analyst expectations. CEO Brian Moynihan highlighted a resilient U.S. economy with strong consumer spending.
Shares rose 2% in response.
Morgan Stanley Surges on Strong Quarterly Results
Morgan Stanley shares jumped 4.7% after delivering better-than-expected Q1 results. The investment bank benefited from market recovery amid economic optimism.
This contributed to broader Wall Street gains.
Global Oil Supplies Face Shortages Amid Iran War
Iran has about 16 days before oil storage runs out, potentially halting production, with Europe facing systemic jet fuel shortages. The Strait of Hormuz lockdown exacerbates risks of global oil shortages weeks away.
Oil prices fell, supporting stock rallies.
AI Hyperscalers Lose Money Despite Massive Hardware Spending
AI companies are spending heavily on GPUs for data centers, with capex projected at $650 billion this year, but hardware becomes obsolete in three years. The more hardware bought, the more unprofitable they become.
This surge equals 2% of GDP.
Amazon Acquires Globalstar for $11.6 Billion to Challenge Starlink
Amazon is buying satellite operator Globalstar for $11.6 billion to boost its Leo satellite internet competing with Elon Musk's Starlink. The deal includes valuable spectrum and extends emergency services to Apple devices.
It precedes a potential SpaceX IPO.
Nike Shares Rise on Insider Buying by CEO and Tim Cook
Nike CEO Elliott Hill and Apple CEO Tim Cook bought 48,000 shares each worth about $1 million. Shares climbed 3.7% despite a 28% year-to-date decline.
This signals confidence amid ongoing challenges.
ASML Falls After Weak Revenue Forecast
Chip machinery maker ASML dropped 5.4% as its upcoming revenue forecast midpoint fell below expectations. The stock remains up 34% year-to-date.
AI-related concerns earlier pressured tech sectors.
ServiceNow, Oracle Recover on AI Worry Easing
ServiceNow surged 7.8% and Oracle rose 4.6% as AI spending and obsolescence fears eased. Both stocks are still down 12-38% for the year.
Private-credit firms like Ares Management gained 6.3%.
Small Business Sales Complaints Signal Recession Risk
Rising complaints from small firms about sales correlate with higher unemployment, per Oxford Economics chart. This could warn of recessionary loop from oil shock impacting spending.
National Federation of Independent Business data highlights the trend.