👋 Hello! The stock market was treated to more good news on Thursday, with more hopes for a denuclearization of Iran and a temporary truce between Israel and Lebanon. Oil prices, however, rose on the news before retreating.
The S&P 500 (^GSPC) and Nasdaq (^IXIC) gained 0.3% and 0.4%, respectively, to new records as the technical rally extended further from the chip trade. The Dow (^DJI) rose 0.2%.
On the agenda this morning:
🏦 The Fed is consolidating again
🎢 Re-examining the Allbird AI wild state
🏦 3 taken from Big Bank’s Q1 results
🇺🇸 Big US interest in AI revolution
🍿 Netflix’s mixed Q1 results come with a big goodbye
🍪 Agent AI changes may be the cause
📆 What we’re watching on Friday: We are looking for a solution for Iran and more profit for the financial sector.
🍪 Nvidia’s impressive rally faces a big test soon. The stock is on a major winning streak.
🏷️ Fed’s Williams warns Iran war could raise inflation and hurt growth. However, he expects inflation to be reduced to 2% next year.
🛒 AI traffic to US retailers increased 393% in Q1. It increases revenue as well.
🕶️ Google glasses with the Gucci logo? Kering’s CEO says they are coming.
✈️ Europe is facing a shortage of jet fuel. The offer is only about weeks away.
🏡 Mortgage rates hit 4-week low. Worries about war are ending.
🔻 And when will loan rates go down further? A calm bond market is helping.
🚀 Starlink user growth gains as SpaceX eyes IPO. Apart from raising capital, IPOs are also good for marketing.
⚡️ Tesla stock wobbles as Musk’s chip plans boost sentiment. Big moves this week mean Tesla stock is poised for an 8-week winning streak.
🐂 The S&P 500 recently flashed a rare bullish signal. With the dot-com catch.
💊 Hims & Hers stock extends gains as RFK Jr. signals FDA to consider loosening restrictions on peptides.
👜 Louis Vuitton, Gucci, Hermès luxury sales drop as war in Iran hits key Middle East demand. The immune system is often affected.
🥤 PepsiCo may be leaving $7 Doritos behind with price cuts. Finally, some good news.
💼 Some companies are withdrawing from hiring because of AI. Not just firing, but also not hiring.
See what else is trending Yahoo Finance.
One of the biggest predictions for 2026 was the violation of the impressive consensus display that produced the Powell Fed.
This period’s collapse would come as labor market risks seemed poised to rear their head, presenting risks to both sides of the stable-price-employment mandate.
But with the Iran war, the FedSpeak chorus from on-the-book members has been joined by even more radical members, such as recent Trump appointee Stephen Miran.
Miran admitted this week that the inflation picture has become “a little less favorable” and set the rate of reduction he would like.
Perhaps it is not a full concern about the risk of inflation, but in the case of a Fed chair that is not dovish (but traditionally as hawkish), the White House that seems to have allowed its push to reduce rates, and that chorus mentioned above, the Fed may enter its next meeting aligned again.
Read more.
There’s been so much buzz this week about Allbirds’ (BIRD) pivot from footwear to AI that a brief meme recap is in order.
The social network was on twitter when the “Wolf of Wall Street” screens showed a very negative view of the company’s movements, the old joke of the frustrated investor putting Benjamin Graham’s speech “The Intelligent Investor” in the garbage, even Liz Ann Sonders sending “Schitt’s Creek” “I saw this movie when ecomra” ’90s was Internet trading now GPU infrastructure.”
Check out the collection here.
The second day of this wild issue showed the reversal many expected, as the stock lost 36% on Thursday. But there won’t be any “I told you so” just yet — Allbird, to be called “NewBird AI,” is still up nearly 400% since its announcement.
People are paying attention, you can be sure.
Myseum, a social media company that we have to admit wasn’t on our radar, rebranded as “Myseum.ai” on Wednesday after the bell rang. And to some extent, their move worked too. We write about them here and, perhaps against your will, now you know about this company.
But what can we say? Myseum.ai stock is up 150%. Until this stops working, we expect it to continue.
Read more.
With plenty of Central Bank income on the books, the overall report card from the sector is in place. They roar, as our banker David Hollerith says.
But the banks also delivered an economic report card, and the message was one of stability and continued strength that we’ve seen bolstering the stock market for years now. Profits and spirits are up.
Yes, it’s a concern too – especially in mouths like big bank executives who are quick to “confirm.” And there’s a lot of fodder in the uncertain basket, obviously.
But David’s three takeaways make three bullish points: High gas isn’t hurting consumer spending, Wall Street is poised for a record year ahead, and the private debt situation doesn’t appear to be a problem.
Read more.
“These results are broadly consistent with the history of [computer] revolution, where the US pulled ahead of Europe. “
-BNP Paribas economists, how the US is poised to reap the benefits of AI
When you say “AI” to someone, a lot comes to mind. Its power to change, good and bad. Its power. Its great price. Its role in the investment world. Maybe even its terrifying power “Skynet”.
But what you may not think about is its role in the international context.
While the technology may cause more domestic inequality, and is poised to give the US greater leverage, it has pushed it even further ahead of other advanced economies that will also benefit.
As our quote makes clear, there is historical precedent for this. And American inventions are often used successfully by the country that makes the invention.
Read more.
Netflix’s Q1 results were overshadowed by an important departure: Founder and board member Reed Hastings said he will be turning down his remote when his term ends.
It’s the end of an era that started with red envelopes in the post office.
The results were the first since the company’s loss to Paramount Skydance in a bid to buy Warner Bros., and a recent price hike, and came with stronger-than-expected earnings.
But the disappointing outlook sent Netflix stock into the red in after-hours trading. The story is now divided. Some investors were left looking for a growth story to capture and didn’t feel like they found it. Others see potential after a clean break with a failed acquisition.
Read more.
Chipmaker shares may not have shown it, but Thursday delivered another bullish signal in AI trading.
Taiwan Semiconductor CEO CC Wei noted the “extremely strong” demand, due to “the shift from productive AI and query mode to agent AI” that requires more computing.
Comments and a multi-year bullish outlook from a chip maker that is getting more long-term customer orders may be enough to offset cost concerns. Something to watch as the benefits of the technology roll in.
Read more.
Economic data: No significant economic data.
Benefits calendar: Truist Financial Corporation (TFC), Fifth Third Bancorp (FITB), State Street (STT), Ally Financial (ALLY)
Hamza Shaban is a reporter for Yahoo Finance covering markets and economics. Follow Hamza on X @hshaban.
Ethan Wolff-Mann is a Senior Editor at Yahoo Finance, managing newsletters. Follow him to X @ewolffmann.
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