Iran ceasefire eases markets as all eyes turn to Tesla's after-hours report.
US equities closed lower on Monday. The S&P 500 fell 0.63% to 7,064, Nasdaq Composite slid 0.59%, and the Dow Jones dropped 293 points. Fears over the expiring Iran ceasefire drove the regular-session selloff.
Sentiment shifted dramatically after hours. Trump announced an indefinite ceasefire extension, describing Tehran's government as "seriously fractured." Dow futures jumped over 200 points, while Brent crude retreated below $98 per barrel.
Notable moves overnight:
- Intuitive Surgical (ISRG) surged after Q1 earnings crushed estimates with EPS $2.50 vs $2.14 expected
- UnitedHealth (UNH) surged 7% after unveiling an aggressive AI strategy for operational efficiency
- Gold fell 0.81% to $4,738 as geopolitical risk premium eased
Today's focus: Tesla (TSLA) reports Q1 after the close. Auto gross margin above 17% is the stabilization threshold.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Trump Praises Tim Cook as Apple Prepares CEO Transition
Former President Donald Trump praised Tim Cook’s leadership following news that he will step down as CEO of Apple (AAPL) effective September 1. Trump described Cook as an “incredible leader” and credited him for driving Apple’s strong performance, highlighting their direct working relationship during his presidency.
Cook, who led Apple for nearly 15 years, will transition to Executive Chairman and be succeeded by John Ternus. Under his leadership, Apple expanded into new product categories and significantly grew its services business, with market capitalization rising from around $350 billion to nearly $4 trillion.
Microsoft Expected to Regain Narrative with Q3 Earnings
Microsoft (MSFT) is expected to “take back the narrative” when it reports fiscal Q3 earnings on April 29, according to Morgan Stanley. While commercial demand remains strong, investor concerns persist around Azure capacity constraints and AI competition, particularly with Copilot.
Azure growth is currently seen as limited more by supply than demand, while Microsoft continues aggressive investments in AI infrastructure. A ~39% Azure growth rate would likely be viewed positively, especially if accompanied by improving Copilot adoption, which has already reached 15 million paid users.
UnitedHealth Lifts Healthcare Sector After Strong Q1 Beat
UnitedHealth (UNH) boosted managed care stocks after delivering better-than-expected Q1 results and raising full-year guidance. The company reported $111.7 billion in revenue, up about 2% year-over-year and above consensus, while EPS came in at $7.23, also beating expectations.
The strong performance was driven by its insurance segment and Optum division, alongside improved cost management. UnitedHealth also raised its full-year EPS outlook to above $18.25 and announced a $2 billion share buyback, supporting positive sentiment across the healthcare sector.
📅 Earnings Watch
Today's market narrative is shaped by two forces: the easing of geopolitical risk from the Iran ceasefire extension and anticipation around Tesla's report that could set the tone for tech stocks this week.
What stocks are you watching today?
