Boosted by strong earnings reports, Intel surged 20% in U.S. pre-market trading; crude oil rose amid the U.S.-Iran standoff, while metals fell across the board.

The deadlock between the US and Iran continues, escalating fears of an intensification of the situation. Global stock markets are under pressure, though the technology sector remains relatively resilient. Transit through the Strait of Hormuz has been substantially hindered, oil prices have risen for the fifth consecutive day, and Brent crude is poised for its largest weekly gain since the conflict began. Meanwhile, uncertainty in the Middle East is weighing on the global economic outlook, pushing metal prices downward.

On Friday, April 24, US stock futures were mixed, with Dow futures edging lower and Nasdaq 100 futures rising; most European stocks opened lower, and Asian indices showed mixed performance. The 10-year US Treasury yield and Bloomberg Dollar Index are both set for their first weekly rise in a month. Oil prices have climbed, with Brent holding above $105 per barrel; metals declined, with spot gold down over 0.3%, falling below $4,680/oz, spot silver down over 1%, and base metals copper, aluminum, tin, and nickel all dropping.

Despite a recent easing in risk premiums, investors remain cautious ahead of the weekend, with market sentiment hinging on whether the Iran situation escalates or is resolved diplomatically. Traders will closely monitor signals from both the US and Iran and shipping dynamics to assess energy supply risks. A disruption in the Strait of Hormuz could drive oil prices higher and dampen global growth.

In the stock market, the technology sector performed strongly, with Nasdaq 100 index futures rising 0.5% after Intel released robust earnings guidance. According to WallstreetCN's previous article, Intel's Q1 revenue, gross margin, and earnings per share all exceeded the upper end of guidance, marking the company’s sixth consecutive quarter of beating financial expectations.

Fawad Razaqzada of Forex.com said: "There is considerable uncertainty in the diplomatic relations between the two sides. More concerning is the ongoing uncertainty around the Strait of Hormuz. Without a clear plan for reopening, the uncertainty remains high."

Key market trends are as follows:

Dow Jones index futures fell 0.07%, S&P 500 index futures rose 0.2%, Nasdaq 100 index futures rose over 0.6%.

Euro Stoxx 50 opened down 0.4%, Germany’s DAX was flat, FTSE 100 down 0.5%, France’s CAC 40 down 0.7%.

Nikkei 225 closed up 1% at 59,716.18 points; Japan’s TOPIX closed almost unchanged at 3,716.59 points; Korea’s Seoul Composite Index closed almost unchanged at 6,475.63 points.

NIFTY IT index fell 5.3%, poised for the lowest level since June 2023.

10-year US Treasury yield held steady at 4.33%.

Bloomberg Dollar Spot Index showed little change; USD/JPY fell 0.1% to 159.60.

Brent crude rose 1% to $106/barrel; WTI crude rose 0.5% to $96/barrel.

Spot gold dropped 0.3% to $4,681.92/oz.

NY silver fell 2.0% intraday to $74.42/oz; spot silver fell 1.5% intraday to $74.25/oz.

Overnight, major US stock indices closed slightly lower, but Intel’s sales outlook exceeded expectations, sending its after-hours stock price soaring 20% and pushing Nasdaq 100 futures higher. The semiconductor sector extended its strength in US trading hours, rising for the 17th consecutive session.

Despite increased volatility from geopolitical risks, corporate earnings remain resilient. Bloomberg data shows that nearly 80% of S&P 500 index constituents that have reported quarterly results have beaten earnings expectations.Adam Hetts and Oliver Blackbourn of Janus Henderson said that while the Iran conflict has heightened market volatility, financial markets have proven to possess relative resilience.

Brent crude rose 0.5% to above $105.5/barrel after previously giving back a 1.9% gain. Giovanni Staunovo, UBS Group analyst in Zurich commented: "As long as oil flows through the Strait remain restricted, the market will continue to tighten, inventories will keep declining, and prices will be supported."

Uncertainty regarding Iran has heightened concerns over global economic growth, dragging base metals broadly lower. London copper fell over 0.8%, London aluminum futures dropped over 0.6%, and London tin futures fell 0.4%. Analysts from BMI, a Fitch Solutions subsidiary, said in a report: "At present, we expect global economic uncertainty to dampen supply-side optimism."

Aside from base metals, precious metals also declined. Spot gold fell below $4,700/oz, spot silver dropped over 1% below $75.

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