S&P 500 Flat as US Strikes Near Hormuz and April PCE Rises 0.4%
SPY•The S&P 500 held around flat as the US launched a second wave of strikes on Iran near the Strait of Hormuz and oil prices ticked higher. April’s Personal Consumption Expenditures index rose 0.4% and strong after-hours earnings from Snowflake, Marvell and HP underpinned AI-driven demand in tech.
1. Market Performance Overview
The S&P 500 opened near unchanged levels, with the Dow Jones Industrial Average down 0.3% and the Nasdaq Composite hovering around flat. Investor focus balanced geopolitical tensions with resilient corporate earnings, resulting in a cautious trading session.
2. Geopolitical Tensions and Commodity Impact
Washington launched a second barrage of strikes on Iranian positions near the Strait of Hormuz, driving Brent crude prices up over 1%. Heightened Middle East hostilities added a risk premium to energy markets, offsetting bullish earnings momentum.
3. Inflation Data and Tech Earnings Support
The Commerce Department reported April’s PCE index climbed 0.4%, slightly below forecasts but underscoring persistent inflation. After the bell, Snowflake revealed a $6 billion AWS deal alongside solid quarterly results, while Marvell and HP also posted better-than-expected numbers, fueling optimism in AI-related sectors.
