Highlights

• Tesla Q1 net income plunged 71% to $409M; EU sales down 45%1. Musk to reduce government role to refocus on Tesla1. Shares up 8% after hours despite ongoing pressure1.
• Alphabet beat Q1 estimates with $90.2B revenue (+12% YoY), $2.81 EPS (+49%), and a $70B buyback. Shares up 5% after hours2.
• Boeing faces halted China jet deliveries amid escalating U.S.-China tariffs; plans to redirect ~50 aircraft. Trade tensions intensify3.
• Google faces potential Chrome browser divestiture after second DOJ antitrust loss; Perplexity AI and Yahoo express acquisition interest4.
• EU levies €700M in first Digital Markets Act fines on Apple and Meta; U.S. calls move "economic extortion," raising transatlantic tech/trade tensions5.
• China denies U.S. claims of ongoing trade talks, demands tariff rollback; Trump asserts daily meetings6. Markets rallied on Trump's comments7.
• U.S. retail sales surged 1.4% in March, fueled by pre-tariff buying; durable goods orders jumped 9.2%. Toyota U.S. sales up 8% on tariff rush13.
• Gold rebounded to $3,340/oz after sharp Shanghai-led selloff; volatility tied to U.S.-China trade uncertainty and a weaker dollar11.
• Goldman Sachs and Deutsche Bank forecast further U.S. dollar weakness; euro could reach $1.3014.
• NYSE triggers rare Zweig Breadth Thrust, historically signaling strong S&P 500 gains15.
• U.S. to offer Saudi Arabia $100B+ arms deal (Lockheed, Boeing, RTX, General Atomics) during Trump’s May visit; defense stocks in focus10.
• PayPal to offer 3.7% yield on PYUSD, expands Coinbase partnership for fee-free transactions; crypto adoption initiatives accelerate16.
• SEC acknowledges VanEck spot Avalanche ETF filing amid 70+ crypto ETF reviews; CME to launch XRP futures May 191718.
• PepsiCo cuts full-year profit outlook to flat EPS, citing trade/tariff headwinds; shares down 2%20.

Commentary

Markets closed on a high note, buoyed by upbeat tech earnings and renewed risk appetite, despite ongoing macro and geopolitical uncertainties. Alphabet’s robust Q1 beat and $70B buyback underscored continued digital ad and cloud strength, propelling tech higher and helping the Nasdaq and S&P 500 notch notable gains2. Tesla’s profit collapse and European demand woes were overshadowed by Musk’s pledge to refocus on the company, fueling an 8% after-hours bounce, though fundamental headwinds remain1.

Trade and regulatory risks remain front and center. Boeing’s China delivery freeze and the escalating U.S.-China tariff standoff highlight persistent supply chain and demand risks for multinationals3. Conflicting U.S. and Chinese statements on trade talks injected volatility6, but markets responded positively to any hint of dialogue—underscoring the sensitivity of risk assets to trade headlines7. Meanwhile, the EU’s first Digital Markets Act fines on Apple and Meta5, plus the DOJ’s antitrust push against Google4, signal a tougher global regulatory regime for U.S. tech giants, raising the specter of forced divestitures and ongoing cross-border friction.

Macro data painted a mixed but resilient picture. U.S. retail sales and durable goods orders surged on pre-tariff buying, supporting the consumer and industrial sectors for now, but raising questions about demand sustainability as tariffs bite13. The dollar’s recent slide—projected to continue by Goldman Sachs and Deutsche Bank—reflects both trade policy headwinds and shifting capital flows, with the euro possibly strengthening to $1.3014. Commodities responded with volatility: gold rebounded sharply from a Shanghai-driven selloff, supported by safe-haven flows and a weaker dollar11.

In crypto, institutional adoption continues to accelerate. PayPal’s 3.7% yield on PYUSD and expanded Coinbase partnership, coupled with the SEC’s review of new spot crypto ETFs and CME’s upcoming XRP futures, signal deepening mainstream integration and product innovation in digital assets1617.

Strategically, traders should watch for further tech sector leadership, especially if the Zweig Breadth Thrust signal plays out as in past cycles15. However, headline risk from U.S.-China relations, regulatory actions, and tariff-driven demand shifts remain key sources of volatility. Defensive positioning in gold and select commodities may persist if dollar weakness and geopolitical tensions escalate1114. Eyes will also be on defense stocks as the U.S. advances a major Saudi arms deal, and on consumer and industrial names for signs of post-tariff demand normalization10.