​EBC Markets Briefing | US stocks on a roll; Netflix shares down despite revenue beat

Wall Street indexes scaled record highs on Friday, after Iran said the Strait of Hormuz was open for passage during a ceasefire in Lebanon and Trump said he expected to reach a deal to end the war soon.

However, Iran has closed the waterway again to commercial vessels and that any ship that approaches it will be targeted. At least two merchant vessels said they were hit by gunfire.

Vice President JD Vance were expected to travel to Pakistan on Monday for a second round of peace talks. However, Iran on Sunday denied that it would participate in new peace talks.

Systematic hedge funds bought stock at a record pace in the last week, said ‌Goldman Sachs. Such money use market signals rather than views on the economic aspects ⁠of the company stocks they trade.

That means they will likely sell holdings rapidly if market sentiment worsens as it is. Trump's threat to dismiss Fed Chair Powell could aggravate concerns about US credibility

The S&P 500 is poised to deliver its sixth consecutive quarter of double-digit earnings growth, according to FactSet. TMT still lead the growth among all sectors, underpinning its favourable position.

The benchmark index entered the overbought territory after hitting a fresh record high, which was indicative a short period of consolidation above the 7,060 area.

Asset recap

As of market close on 17 April, among EBC major products, Stellantis shares led gains. The company and Microsoft have agreed to a five‑year strategic partnership to ‌co-develop AI.

Netflix beat Wall Street expectations for revenue and maintained full-year guidance of revenue. Despite dropping its proposed deal for WBD's assets, that would-be transaction will still affect the finances this year.

German stocks surged after a plunge in oil prices. The coming week presents a major challenge for equity valuations as Germany's corporate earnings season kicks into high gear.

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