By Mike Dolan
April 21 (Reuters) –
What matters today in the US and global markets
By Mike Dolan, Managing Editor of Finance & Markets
Tech stocks refuse to fall this week, despite ongoing tensions in the Gulf and the imminent expiration of the current two-week ceasefire between the United States and Iran on Wednesday.
Although Wall Street indices fell slightly on Monday, futures recovered overnight and global high-tech stocks rose, especially in Asia.
I’ll talk about that and more below.
But first, check out my last column on whether Europe’s savings rates could help it weather the oil crisis and why the answer isn’t so simple.
And listen to the latest episode of the daily Morning Bid podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week.
Finally, don’t forget to mark your calendar for April 23, when I’ll join my ROI colleague Jamie McGeever for a timely webinar on how to rethink safe haven assets in uncertain times. Register here.
TECHNOLOGY ADDRESSES TENSION IN IRAN
Wall Street’s pause on Monday came as investors were concerned about the durability of the ceasefire and the uncertain prospects for new peace talks, which a Pakistani source said could restart as early as Wednesday. Tehran is still “reviewing its participation in the possible talks.”
Despite Monday’s calm, sentiment improved on Tuesday as Asian stocks rose sharply amid renewed enthusiasm for AI and reports that Iran was considering joining the talks.
South Korea’s volatile Kospi hit a new high for the first time since the war with Iran began, and technology-driven gains also boosted markets in Tokyo and Taiwan. Technology investor SoftBank soared and memory chip maker SK Hynix hit a new all-time high.
Sentiment was also boosted by Amazon’s announcement on Monday that it plans to invest up to $25 billion in artificial intelligence startup Anthropic. This follows its $50 billion investment in OpenAI earlier this year.
Those deals will set the tone as U.S. tech earnings begin this week, with Tesla reporting earnings on Wednesday. Meanwhile, Elon Musk’s SpaceX will hold closed-door briefings with analysts this week ahead of a record-breaking initial public offering later this year.
Meanwhile, Apple shares largely ignored the announcement that hardware chief John Ternus would succeed Tim Cook as CEO starting in September. Cook will remain on the board as executive chairman after 15 years at the helm.
On the macroeconomic front, Federal Reserve Chairman nominee Kevin Warsh will face Congress today for his confirmation hearing, and his prepared remarks suggest he will emphasize a commitment to the Fed’s independence. U.S. retail sales for March will dominate the data chart, offering a glimpse of how consumers absorbed the first month of the Iran war and oil crisis.