U.S. stocks finished Monday’s session in mixed fashion as investors weighed strong earnings results against renewed geopolitical anxiety in the Middle East. The S&P 500 and Nasdaq Composite both closed at record highs, buoyed by a powerful rally in semiconductor and telecom shares, but gains across the broader market were capped after reports that U.S.-Iran peace talks over the Strait of Hormuz had stalled, sending crude oil prices sharply higher.
The S&P 500 (SPI:SP500) added 8.83 points, or 0.12%, to close at a record 7,173.91. The Nasdaq Composite rose 50.50 points, or 0.20%, to a new all-time high of 24,887.10. The Dow Jones Industrial Average, weighed down by energy-cost-sensitive industrial and consumer names, slipped 62.92 points, or 0.13%, to settle at 49,167.79. WTI crude jumped roughly 2% to nearly $97 a barrel, while Brent crude topped $108, as mutual shipping blockades continued to choke traffic through the Strait of Hormuz to near-zero levels.
Notable Movers
Intel (INTC) was the day’s standout performer, surging 23.6% after blowout first-quarter results released last Thursday continued to drive buyer enthusiasm. The chipmaker posted non-GAAP earnings of $0.29 per share on revenue of $13.58 billion, both well above consensus estimates, and issued strong second-quarter guidance. A newly announced multiyear deal with Google to power cloud AI workloads with its Xeon CPUs added fuel to the rally.
Verizon (VZ) climbed 3.5% after the telecom giant raised its full-year adjusted earnings outlook on the back of better-than-expected first-quarter profit and revenue. On the downside, Domino’s Pizza (DPZ) tumbled 10.5% after missing Wall Street’s first-quarter earnings estimates, with management citing higher input costs tied to elevated commodity prices. Poet Technologies (POET) cratered nearly 50% to $8 after the chip-scale photonics company disclosed it had canceled all purchase orders from Celestial AI, raising questions about its near-term revenue pipeline. Veradermics (MANE) was a bright spot in biotech, soaring 45% on positive topline results from its Phase 2/3 clinical trial of VDPHL01.
Looking Ahead
This week shapes up as one of the busiest of earnings season, with a heavy slate of reports that could set the tone for markets heading into May. Investors will also be watching the final April reading of the University of Michigan Consumer Sentiment index, where the consensus sits at 47.6 unchanged from the record-low preliminary figure and a reminder that everyday consumers remain under pressure even as corporate profits surprise to the upside. On the geopolitical front, any developments in the U.S.-Iran standoff over the Strait of Hormuz will be closely watched, as sustained crude prices near $100 threaten to add fresh headwinds for both consumers and businesses alike.