(April 21): US stocks were muted on Tuesday as traders pored over the latest corporate earnings and retail sales data while awaiting updates on the Iran ceasefire talks as well as Kevin Warsh’s Senate hearing.
The S&P 500 Index rose 0.3% at 9:49am in New York, rebounding from Monday’s decline, which halted a five-session rally. The tech-heavy Nasdaq 100 Index was little changed. Brent crude fell 0.6% to around US$89 per barrel. The Cboe Volatility Index hovered near 19.
“Markets – as usual – have a mind of their own and seem to have largely moved past worrying about the Iran war and are celebrating a robust earnings season,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Retail sales soared 1.7% in March, the most in in a year, according to a Commerce Department report. The March increase was led by a 15.5% jump in spending on gas as the Iran war pushed fuel prices to the highest levels since 2022. Excluding gas stations, sales rose 0.6%.
Gary Schlossberg, global strategist at Wells Fargo Investment Institute, said sizeable increases in tax refunds are helping ease pressure on household budgets for now.
“Barring an early break in fuel costs, consumers will be tested as we move further into the spring and summer, as those refunds wind down and households are forced to rely on slowing income growth and low saving rates to sustain spending,” Schlossberg said.
See also: Stocks fall, oil jumps on doubts over peace deal
Patience
Investors are keeping an eye on developments in the Middle East war. The US is waiting to see if Iran will take part in a second round of ceasefire talks before a truce expires on Wednesday. President Donald Trump said Monday that Vice-President JD Vance was ready to leave for negotiations in Pakistan. Tehran has yet to confirm its attendance.
Speaking to Bloomberg News in a phone interview on Monday, Trump said he would not be “rushed into making a bad deal” and that the US naval blockade on Iranian ports would stay in place until an agreement is reached. Additionally, the president said a ceasefire extension beyond late Wednesday was unlikely.
See also: US stocks decline amid fading US-Iran peace talk prospects
“The fact that the major average fell only one quarter of one percent shows that investors basically have no fear of an escalation of the war in the Middle East,” said Miller Tabak’s Matt Maley.
The Federal Reserve’s future is also on the minds of traders, as Kevin Warsh sits for his confirmation hearing. Warsh is Trump’s pick to replace the central bank’s current chair, Jerome Powell.
It could be one of the most contentious such hearings in many decades. Warsh, in prepared remarks, vowed to protect the Fed’s independence.
Earnings season rolled on, with UnitedHealth Group Inc. jumping 9.7% after the health insurer boosted its profit forecast. Meanwhile, Alaska Air Group Inc fell 1.1% after the carrier suspended its full-year profit guidance and said it expects a deeper loss than consensus expected for the second quarter.
Apple Inc slipped after announcing Tim Cook would be stepping down as chief executive officer in September. John Ternus, senior vice president of hardware engineering, will succeed Cook. Amazon.com Inc rose after the e-commerce giant said it is investing another additional US$5 billion ($6.4 billion) in Anthropic PBC.
Uploaded by Magessan Varatharaja
