US Stock Market Outlook: Trump’s Statements Impact Futures, Oil Prices Rise, Tesla Q1 Deliveries Ahead.

Market Overview

On Thursday morning, U.S. stock futures fell sharply as former President Trump vowed to take "extremely severe" actions against Iran, halting the market's upward momentum. Oil prices surged over 9%, and the S&P 500 Volatility Index (.VIX) spiked.

Pre-Market Movements

• Major tech stocks declined, with Micron Technology down over 5%, TSMC and ASML down over 4%, and AMD down over 3%.
• Other notable declines included Nvidia, Meta, Google, Apple, and Tesla, all down more than 2%.
• Chinese stocks also faced downward pressure, with Alibaba down nearly 3% and NIO down over 4%.
• Storage stocks led the declines, with SanDisk down over 6% and Western Digital down over 5%.

Oil Sector Gains

The oil sector saw gains alongside rising oil prices, with ConocoPhillips up nearly 5% and Apache Corporation up over 4%. The U.S. Oil ETF (USO) rose by 9%.

Amazon's Acquisition Plans

In a competitive move in the commercial space sector, Amazon is reportedly negotiating to acquire satellite communications group Globalstar ($GSAT$) to bolster its low Earth orbit satellite business and compete with SpaceX's Starlink.

SpaceX IPO News

SpaceX has reportedly submitted a confidential IPO application to the SEC, potentially aiming to raise between $40 billion and $80 billion, with a target valuation of $1.75 trillion. The company could go public as early as July.

Tesla's Delivery Numbers

Tesla ($TSLA$) is expected to report approximately 372,160 vehicle deliveries for the past three months, reflecting an 11% year-over-year increase but still below recent quarterly totals.

Walmart's Membership Fee Increase

Walmart's Sam's Club announced a $10 increase in its annual membership fee, which is expected to boost Walmart's earnings per share by 2 cents.

Eli Lilly's Weight Loss Drug Approval

Eli Lilly's ($LLY$) new weight loss pill received FDA approval, leading to a 5% increase in its stock price. The medication, orforglipron, is designed for adults with obesity and will be available starting April 6.

Global Market Reactions

Trump's comments on Iran have dampened market optimism, leading to a rise in oil prices and a decline in global stock markets. Analysts noted that the lack of a reopening plan for the Strait of Hormuz could lead to prolonged high oil prices and inflation risks.

Gold Market Insights

Despite recent declines, Standard Chartered predicts that gold prices will rebound and challenge historical highs, maintaining its status as a safe-haven asset.

Aluminum Supply Concerns

Goldman Sachs warns of long-term upward pressure on global aluminum prices due to supply disruptions in the Middle East, which is a significant source of aluminum production.

Conclusion

As geopolitical tensions escalate, market volatility is expected to continue, with investors closely monitoring developments in the Middle East and their potential economic impacts.