Alphabet and Tesla reported negative free cash flow and higher capital expenditures due to significant AI investments, despite better-than-expected revenue. This led to an after-market selloff for both companies, signaling potential scrutiny for other tech megacaps reporting soon.
Bitcoin maintains key support levels, with some traders predicting short-term gains up to $67,000, despite retreating spot demand. Geopolitical tensions, particularly escalating US-Iran rhetoric, are driving oil prices higher, while major corporate earnings reports from Tesla, Alphabet, and Intel are set to influence risk assets.
South Korea's benchmark KOSPI index plunged over 7% on Tuesday, erasing recent gains driven by AI optimism. Investors rushed to lock in profits after Samsung Electronics announced strong quarterly earnings, triggering a broad sell-off in tech stocks. The market experienced trading suspensions and significant drops in major companies like Samsung Electronics and SK Hynix.
Seoul shares opened higher on Monday, driven by gains in technology companies like Samsung Electronics and SK Hynix, as investors anticipate second-quarter earnings reports for signs of AI-driven profit.
PlayStation faces a competitive landscape with declining first-party game sales. Sony announces new titles like Marvel's Wolverine and Silent Hill: Townfall, while rivals Nintendo and Xbox gain ground in publishing and exclusive content.
Alphabet and Meta both reported stronger-than-expected earnings, with Alphabet's stock rising 7% and Meta falling 7% in extended trading. The divergence stems from Alphabet's massive cloud infrastructure business that monetizes AI investments, while Meta lacks this revenue stream. Alphabet raised 2026 capex guidance to $180-190 billion, while Meta increased its guidance to $125-145 billion.
The United Arab Emirates will exit OPEC on May 1, Energy Minister Suhail Al Mazrouei told CNBC, citing desire for more freedom to reach their goal of 5 million barrels per day of capacity by 2027. The shock decision is reverberating across global energy markets, with analysts warning it could expose fractures in the cartel and prompt other members to exit. Oil prices traded flat while Asian stocks and European futures were muted. Meanwhile, all eyes are on the Federal Reserve for what is likely Chairman Powell's final decision, with Kevin Warsh's nomination advancing in the Senate.
European stocks dipped slightly Tuesday as traders awaited Washington's reaction to Iranian peace proposals and analyzed earnings from major companies like Barclays, Novartis, Airbus, and BP. Barclays shares fell on a credit hit, while other companies reported mixed results.
European stock markets are expected to open higher Tuesday as investors await President Trump's response to Iranian peace proposals regarding the Strait of Hormuz and prepare for earnings from Novartis, Airbus, BP, and Barclays. Central bank meetings from the Fed, ECB, and BOE later this week dominate the agenda, with markets anticipating rates to hold steady but remain open to future hikes.
