Futures trading is seeing a downward trend this morning following unsuccessful negotiations with Iran over the weekend, coupled with President Trump’s announcement that the U.S. will block the Strait of Hormuz. Market participants are gearing up for the first-quarter earnings season this week, with major banks and brokerage firms expected to report their results today and tomorrow. The previous week ended on a high note, although trading was marked by volatility, with major indices fluctuating significantly. Despite this, the market managed to record its strongest week since November. Notably, the Nasdaq emerged as the lone gainer on Friday, closing up 0.35% at 22,902. In contrast, the Dow Jones Industrial Average suffered a 0.56% decline, finishing at 47,916, while the Russell 2000 fell 0.22% to end at 2,630. The S&P 500 almost stabilized, closing down just 0.11% at 6,816.
In the Treasury market, sellers re-emerged on Friday after what had previously been a solid week, leading to rising yields across the board. This uptick is attributed to ongoing concerns about inflation and escalating geopolitical tensions in the Middle East, perpetuated by fears of oil-driven inflation. Markets are adapting to a hawkish stance from the Federal Reserve, with traders factoring in expectations of rising interest rates that typically devalue existing bonds. As a result, the long bond closed at 4.91%, and the benchmark 10-year note settled at 4.32%.
On the energy front, oil prices had a tumultuous week, ultimately closing positively for consumers as both major benchmarks slipped below the psychologically significant $100 mark. Brent Crude finished at $94.29, down 1.60%, while West Texas Intermediate closed at $96.57, a decrease of 1.33%. Natural gas also dipped, concluding the week at $2.65, down 0.82%.
In the precious metals sector, gold wrapped up a tumultuous week on a subdued note, closing at $4,747, down 0.38%. Conversely, silver experienced a slight uptick, ending at $75.76, up 0.55%.
The cryptocurrency market engaged in a “risk-off” trading mode on Friday, with Bitcoin maintaining levels above $72,000 as investors braced for disappointing inflation data. The digital currency showed tentative recovery signs post a broader corrective phase, with Ethereum holding steady above significant support levels and trading above the 50-day exponential moving average. However, the crypto market continues to navigate precarious conditions as participants analyze the higher-than-expected Consumer Price Index data for March. As of 7 AM EDT, Bitcoin was priced at $70,825, while Ethereum was quoted at $2,184.
Turning to analyst evaluations, various firms have made significant moves in upgrades, downgrades, and initiations on Monday. Bilibili Inc. received an upgrade from Morgan Stanley, raising its target price from $25 to $31. Constellation Brands changed from a Hold to a Buy rating at TD Cowen, with its target price increased from $142 to $190. CoreWeave was upgraded by Macquarie, raising its target to $125 from $90, while Starbucks saw its rating improve to Hold from Underperform at Jefferies, with a price target adjustment to $92 from $86. Moreover, T-Mobile US was upgraded to Overweight from Sector Weight at KeyBanc, with a target price set at $260.
On the other hand, significant downgrades included Best Buy Inc., which was downgraded to Sell from Buy at Goldman Sachs, with a target price adjustment from $76 to $59. Centessa Pharmaceuticals, downgraded to Hold from Buy at Truist, has a target price set at $38. Hewlett Packard Enterprise also saw a downgrade to Outperform from Strong Buy at Raymond James, with its target reduced to $29. Similarly, Nebius Group NV was downgraded to Hold from Buy at Freedom Capital, raising its target price from $108 to $154. Lastly, Nike’s rating was downgraded to Hold from Buy at HSBC, with the target slashed from $90 to $48.
New initiations included a Neutral rating for Adobe Inc. at BTIG, while Jefferies initiated Credo Technology Group with a Buy rating and a target price of $175. Johnson Controls received an In Line rating from Evercore ISI, with a $155 target price, while Loop Capital initiated Rollins Inc. with a Hold rating and a target price of $56. Tempus AI Inc. was started with an Underperform rating at Jefferies, setting a price target of $35.
