Minutes after markets closed on Tuesday, President Trump said that the U.S. would extend the ceasefire with Iran. He said that Tehran’s government was “seriously fractured.” Earlier that day, V.P. Vance canceled his trip to Pakistan, since Iran did not respond to meet.
Stock markets are trading close to their all-time highs. They priced in de-escalating tensions among the U.S., Israel, and Iran. However, an advisor to the speaker of Iran’s parliament, Mohammad Baqer Qalibaf, said that the extension was a ploy to buy time for a surprise strike.
Investors locked in profits from defense contractor stocks. Lockheed Martin (LMT) continued to fall, closing below $572. It peaked at over $680 in early March. RTX (RTX) fell by 4.4% on Tuesday. The company posted strong results and issued an upbeat guidance.
Northrop Grumman (NOC) fell by 7% after posting quarterly results.
Expect stock markets to rise by around 50 bps daily. Magnificent seven firms like Amazon (AMZN) will post quarterly results this week. Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT) all report results on April 27.
Software stocks to watch include ServiceNow (NOW), which reports results next.
Gold and silver might fall as the U.S. dollar rises and bond yields increase. Metal stocks like Freeport-McMoRan (FCX) and Albemarle (ALB) might fall back from their multi-year highs.
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