Powell's final dance, earnings reports, AI trading tests, UAE exits OPEC, OpenAI responds.

Trump Highlights Iran's Struggles, Analysts Say Iran Can Withstand US Sanctions

Trump's Statements on Iran

On April 28, President Trump claimed that "Iran is in a state of collapse" and is eager for the US to reopen the Strait of Hormuz. He noted that Iran is facing leadership issues but believes they can manage.

Analysts' Perspectives

Multiple analysts argue that Iran still possesses sufficient countermeasures to mitigate the impact of US sanctions on its oil production. The Iranian Navy's deputy commander stated that Iran has achieved absolute control over the Strait of Hormuz and is demanding tolls from passing vessels.

US Sanctions on Iran

The US Treasury Department announced that it prohibits American individuals and entities from paying tolls to Iran for the Strait of Hormuz. This includes any direct or indirect payments to the Iranian government or the Islamic Revolutionary Guard Corps (IRGC). The sanctions pose significant risks for foreign entities engaging in transactions with sanctioned Iranian parties.

UAE Exits OPEC

Following the UAE's announcement to exit OPEC on May 1, Wall Street analysts, including those from JPMorgan and UBS, assessed the potential impacts on the energy market. They concluded that short-term fluctuations in Brent crude oil prices are unlikely due to the ongoing blockade of the Strait of Hormuz. However, if a peace agreement between the US and Iran is reached, the UAE could increase production outside OPEC's quota system, leading to a potential oversupply in the global oil market.

US Senator's Comments on Powell

Senator Thom Tillis expressed understanding for Federal Reserve Chairman Jerome Powell's desire to remain on the board after his term ends on May 15, as he awaits outcomes from ongoing reviews and appeals.

Federal Reserve's Upcoming Decisions

The Federal Open Market Committee (FOMC) is expected to maintain current interest rates, with discussions on whether to signal a pause in rate cuts. Recent polls indicate a growing public dissatisfaction with economic issues, particularly rising living costs.

Market Reactions

On April 28, US stock indices fell collectively, with the Nasdaq down 0.9%. Major tech stocks experienced declines, while some companies like Apple and Microsoft saw slight gains.

Earnings Reports

• Seagate Technology: Reported Q3 revenue of $3.11 billion, exceeding expectations, leading to a post-market surge of over 16%.
• NXP Semiconductors: Q1 revenue grew by 12%, prompting a post-market increase of over 15%.
• Robinhood: Reported Q1 revenue of $1.067 billion, a 15% increase, but shares fell over 9% post-market.

OpenAI's Response to Growth Concerns

OpenAI refuted claims of slowing growth, asserting that both consumer and enterprise segments are thriving. The company continues to pursue enhanced computing power to improve product offerings.

Other Notable Developments

• NVIDIA launched a new AI model, enhancing efficiency significantly.
• Amazon introduced a new AI desktop agent to compete in the enterprise software market.
• Apple plans to overhaul its photo editing features using AI technology.

Hong Kong Market Activity

On April 28, southbound funds net bought over HKD 14.5 billion in Hong Kong stocks, with significant purchases in Xiaomi and net sales in Alibaba.

Company Updates

• BYD reported Q1 revenue of 150.2 billion yuan, slightly exceeding expectations, but net profit fell by 55% due to foreign exchange losses.
• Zijin Mining plans to invest $1.5 billion in expanding its La Arena copper mine in Peru.