Markets Look Past the Risk… For Now

Global equities retreat after yesterday’s bounce, as we await another key earnings day.

Key Takeaways

• Earnings Take the Wheel: The S&P 500 remains steady near highs (as reflected in the S&P 500 and VIX), as investors look past geopolitical risks and focus instead on a heavy earnings slate — results from American Airlines, American Express, and Comcast will provide macro signals on fuel costs, travel demand, and U.S. consumer resilience.

• Industrial Strength, AI Jitters: Wednesday’s earnings from Tesla, IBM, and Boeing offered a useful cross-section of the market’s biggest anxieties and hopes, while also providing signals on the underlying pace of industrial growth. Tesla brought in a relief beat, and Boeing’s quarter was strong, showing some real-economy strength, while IBM didn’t do enough to reassure investors nervous about AI’s impact on software.

• Energy Shift Favors U.S. Gas: The U.S. natural gas sector will be a major strategic winner from the Iran conflict. Disruption to Middle Eastern production and liquefaction has led to U.S. supply emerging as a leading alternative, helping absorb soaring demand from both Europe and Asia.