US Stocks Edge Lower as Investors Assess Israel’s Strike Against Iran
On Friday, US stocks edged lower as investors assessed the impact of Israel’s direct strike against Iran. The missile strike, which targeted key military sites in Isfahan, was limited and largely seen as symbolic, potentially serving as an off-ramp to avoid further conflict.
According to NYSE market strategist Michael Reinking, the response to the strike seemed well telegraphed and resulted in minimal damage and casualties. Iranian sources have indicated that there is no immediate plan for retaliation, suggesting a desire to de-escalate the situation.
Following news of the strike, oil prices surged overnight, with WTI Crude Oil spiking more than 3%. However, those gains have since been erased, and oil prices have moved lower.
Investors are also keeping an eye on US earnings results, with Netflix being the latest megacap company to report its first-quarter results. So far, 77% of S&P 500 companies that have reported earnings have beaten profit estimates by a median of 7%, while 55% have beaten revenue estimates by a median of 3%.
In commodities, bonds, and crypto, West Texas Intermediate crude oil dropped to $81.49 a barrel, while Brent crude fell to $86.44 a barrel. Gold edged lower to $2,391.10 per ounce, and the 10-year Treasury yield fell to 4.60%. Bitcoin, on the other hand, edged higher to $64,663.
As investors continue to assess the situation in the Middle East and digest earnings reports, the stock market remains volatile. Stay tuned for more updates on this developing story.
