Stock Market Update

Equity futures point to a lower opening this morning after stocks retreated from record-highs on Friday, with the major averages finishing mostly lower for the week. Strong gains from tech and mega-cap names led last week's advance to record highs, though leadership was often narrow. Additionally, rising oil prices and Treasury yields have dampened risk sentiment and the market's expectations for any easing from the Fed in the coming months.

The U.S.-Iran conflict remains largely at a deadlock, which keeps shipping traffic through the Strait of Hormuz frozen, according to Bloomberg. Additionally, Axios reports that President Trump is waiting for a new proposal from Iranian mediators.

This week will feature earnings reports from several key companies, including NVIDIA (NVDA 227.85, +2.53, +1.1%) after the close on Wednesday.

Meanwhile, this week will be considerably lighter on the economic data front, with very few releases of note on the calendar.

In corporate news:

• SpaceX could file for IPO as soon as Wednesday, according to Bloomberg.
• Delta Airlines (DAL 72.07, +1.84, +2.6%) moves higher after Berkshire Hathaway disclosed a new position in the company.
• NextEra Energy (NEE 91.56, -1.80, -1.9%) and Dominion Energy (D 70.80, +9.07, +14.7% ) have entered into a definitive agreement to combine in an all-stock transaction.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: -0.1%, India's Sensex: +0.1%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -1.5%.

In news:

• Japanese debt saw a continuation of last week's pressure after Prime Minister Takaichi confirmed that she asked Finance Minister Katayama to plan an extra budget, contrary to recent reports.
• A South Korean court ruled that actions taken by Samsung's union must not significantly hinder production.
• The White House released a summary of agreements made between Presidents Trump and Xi, including an agreement for cooperation on rare earth elements.
• China's Retail Sales grew at their slowest pace since late 2022 in April.

In economic data:

• China's April Retail Sales 0.2% yr/yr (expected 2.0%; last 1.7%). April Industrial Production 4.1% yr/yr (expected 6.0%; last 5.7%); 5.6% yr/yr (last 6.1%). April Fixed Asset Investment -1.6% yr/yr (expected 1.7%; last 1.7%), April Unemployment Rate 5.2% (expected 5.3%; last 5.4%), and April House Prices -3.5% yr/yr (last -3.4%)
• Singapore's April trade surplus SGD13.068 bln (last surplus of SGD11.12 bln). April non-oil exports 11.0% m/m (last 3.0%); 24.5% yr/yr (last 15.3%)
• New Zealand's April Performance of Services Index 48.9 (last 46.2)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.4%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.4%, Italy's FTSE MIB: -1.5%, Spain's IBEX 35: -0.1%.

In news:

• British Prime Minister Starmer is reportedly planning his exit, though he has not officially announced his resignation yet.
• Ryanair continues expecting passenger growth for the year, but margins are expected to be pressured by high fuel prices.
• G-7 finance ministers and central bankers met in Paris over the weekend. Fitch affirmed Germany's AAA rating with a Stable outlook.

In economic data:

• Italy's March trade surplus EUR4.709 bln (expected surplus of EUR5.25 bln; last surplus of EUR4.983 bln)
• Swiss Q1 GDP 0.5% qtr/qtr (last 0.1%)