TL;DR

U.S.-Mexico near steel tariff rollback; Trump to ease climate rules; SEC eyes Solana ETF staking.

Highlights

• U.S. and Mexico near agreement to roll back Trump-era 50% steel tariffs, likely replacing them with a volume-based quota 1.
• Trump administration to roll back power plant CO₂ limits and revoke California’s stricter vehicle emissions rules; legal challenges expected 2.
• SEC considers allowing staking rewards in proposed Solana ETFs; begins review of Nasdaq’s 21Shares Sui ETF 3.
• GameStop (GME ) posts Q1 profit (EPS $0.09) despite 17% sales drop; $500M+ Bitcoin purchase disclosed; cash holdings now $6.4B 74.
• GitLab (GTLB ) beats Q1 estimates but shares fall 12% after hours on cautious forward guidance 8.
• Google offers voluntary buyouts in core Search and Ads division amid AI competition and antitrust pressures 5.
• Microsoft (MSFT ) negotiating deal to add one million Copilot AI users from a single enterprise customer 6.
• Starbucks (SBUX ) to deploy Microsoft (MSFT ) Azure OpenAI assistant in stores to reduce wait times 14.
• U.S. FY2026 defense budget cuts Ukraine military aid, drops $300M Security Assistance Initiative, signaling policy shift 9.
• Trump orders federal agencies and National Guard to intervene in Los Angeles migrant unrest; DOJ probing protest funding 1112.
• OpenAI launches o3-pro model, replacing o1-pro, with improved reasoning and broader enterprise rollout next week 13.
• U.S. urges allies to rescind sanctions on Israeli ministers, highlighting differences with key partners over Israel policy 15.
• Senator Graham to introduce resolution demanding full dismantlement of Iran’s nuclear program, with White House and Israeli support 10.

Commentary

Trade, tech, and policy headlines dominated after-hours sentiment. The potential rollback of steep U.S. steel tariffs on Mexico, if confirmed, would ease input costs for U.S. manufacturers and automakers but may pressure domestic steel producers depending on the final quota 1. Any formal announcement could move steel, auto, and materials equities, as well as the Mexican peso.

The Trump administration’s planned reversal of federal and California climate rules is a clear positive for traditional energy and legacy automakers, likely reducing compliance costs in the near term. However, the regulatory uncertainty and expected legal battles could weigh on EV and clean energy stocks, and may create short-term volatility for utilities and auto suppliers exposed to California 2.

Tech sector news was active: GitLab’s (GTLB ) solid Q1 was overshadowed by conservative guidance, triggering a sharp after-hours selloff 8. Google’s voluntary buyouts in core divisions underscore cost discipline as AI competition intensifies 5. Microsoft’s (MSFT ) Copilot expansion 6 and Starbucks’ (SBUX ) AI deployment 14 signal continued enterprise and retail adoption of generative AI, with Microsoft (MSFT ) positioned as a key beneficiary. OpenAI’s o3-pro launch further raises the bar in AI infrastructure, with broader enterprise access next week 13.

In crypto, the SEC’s openness to staking in Solana ETFs and the review of the 21Shares Sui ETF could broaden U.S. access to alternative digital assets, potentially supporting sentiment for SOL, SUI, and related equities 3. GameStop’s (GME ) $500M+ Bitcoin purchase adds digital asset exposure but did not meaningfully move the stock after hours, suggesting traders remain focused on core business performance 47.

On the policy front, the U.S. defense budget’s reduction in Ukraine aid and the federal response to unrest in Los Angeles introduce new macro and geopolitical variables 911. Tensions over Israel policy and Iran remain in the background, but could influence defense and energy names if escalations occur 1015. Watch for further clarity on steel quotas, regulatory pushback in energy and autos, and additional AI adoption headlines for sector rotation cues.