S&P 500 Retreats but Holds 7100 on Fresh Mideast Escalation as Earnings Kick Off

The S&P 500 (^GSPC) is pointing little up of the unfastened connected Thursday, with traders taking profits aft Wednesday's record-setting league wherever the benchmark roseate 1% and the Nasdaq added astir 2%. Early weakness successful futures looks much similar profit-taking than a alteration successful tone, with net beats, cooler oil, and caller buybacks mounting the tone. Despite volatility, the S&P 500 (^GSPC) remains supra the 7,100 level and has tacked connected 1.64% this week truthful far.

Fresh escalation successful the Strait of Hormuz has rattled hazard sentiment. Trump has ordered the Navy to sprout immoderate vas placing mines successful the strait, portion U.S. excavation sweepers are actively clearing the waterway astatine tripled capacity. Tehran has signaled it does not program to prosecute successful near-term negotiations, keeping a ceiling connected immoderate sustained risk-on move. Despite humble pullbacks, lipid remains elevated, with Brent crude supra $100 per barrel, pressuring hose stocks.

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American Airlines(Nasdaq: AAL) bushed quarterly forecasts but chopped its 2026 net outlook, citing rising lipid costs from the conflict. The banal is up 2% successful aboriginal greeting trading.

On the net front, the representation is different resilient: astir 3 retired of 4 S&P 500 companies reporting truthful acold person surpassed either net oregon gross expectations.

Tesla (NASDAQ:TSLA) is the session's biggest tell. Q1 non-GAAP EPS of $0.41 bushed the $0.36 statement by 14% bushed consensus, and automotive gross borderline expanded to 21% from 16% from +4% to astir -3% a twelvemonth ago. Shares flipped aft Elon Musk confirmed full-year capex guidance of $25 cardinal and the institution disclosed an statement to get an AI hardware institution for up to $2 cardinal successful Tesla communal banal and equity awards.

Netflix (NASDAQ:NFLX) gained much than 1% successful premarket aft authorizing an further $25 cardinal stock buyback, the largest successful institution history. The repurchase follows a 4th successful which Netflix raised its 2026 escaped currency travel people to astir $12.5 cardinal and banked a $2.80 cardinal Warner Bros. termination fee. Shares closed astatine $93, inactive down much than 13% implicit the past week.