Energy Stocks Lead S&P 500 Amid Prolonged Iran Conflict

• Nike's stock tumbled 13.1% after the company reported better-than-expected quarterly profits but issued weak financial forecasts. • Investors reacted negatively to cautious guidance amid softening consumer demand and competitive pressures in apparel. • The drop underscores broader concerns in consumer discretionary stocks, impacting sector sentiment on Wall Street.

• Eli Lilly announced the acquisition of Centessa Pharmaceuticals, a company developing treatments for excessive daytime sleepiness and neurological conditions, in a deal valued at up to $7.8 billion if certain conditions are met. • Centessa shares soared 44% on the news, while Lilly's stock rose 3.7%, helping offset broader market pressures from companies like McCormick. • The deal highlights Big Pharma's aggressive push into neuroscience amid rising demand for sleep disorder therapies, potentially boosting Lilly's pipeline.

• S&P 500 rises 1.12% or 71 points, with SPDR S&P 500 ETF (SPY) up 0.91% or $5.78, on March 31, 2026, amid news President Trump may end the war. • Dow Jones climbs 1.14% or 512 points, Nasdaq advances 1.09% or 252 points, as futures explode on the development. • Oil increases 25 cents to $103.13 per barrel, gold jumps $51.39 to $4,579 an ounce, while Bitcoin falls $173 to $66,554.

• Nvidia posted first-quarter revenue of $28.3 billion, representing a 106% year-over-year increase and surpassing Wall Street consensus forecasts by 8%, driven primarily by sustained demand for AI data center GPUs. • The chipmaker's gross margin expanded to 72.1%, the highest level in five quarters, as production efficiency gains and favorable product mix offset supply chain costs. • Guidance for Q2 revenue of $32-34 billion exceeded analyst estimates, reinforcing investor confidence in the artificial intelligence infrastructure boom and supporting semiconductor sector valuations amid broader market volatility.

• Meta Platforms reported Q1 revenue of $39.1 billion, growing 27% year-over-year and substantially exceeding Wall Street consensus estimates, driven by robust advertising demand and improved cost management. • Average revenue per user (ARPU) in the United States increased 18% year-over-year to $54.62, reflecting higher-value ad inventory and refined targeting capabilities powered by artificial intelligence. • The company guided Q2 revenue at $37-39.5 billion, cautioning of seasonal moderation, though full-year guidance remains constructive and suggests sustained advertiser confidence despite macro uncertainty.

• Berkshire Hathaway disclosed in SEC filings that its position in Apple has grown to $170 billion in market value, reinforcing Apple as the conglomerate's largest single equity holding at approximately 48% of total equity portfolio. • The increase reflects both organic price appreciation of Apple shares and incremental purchases by Warren Buffett's investment team amid the company's strong iPhone 16 sales and services segment growth. • The substantial concentration signals Berkshire's high conviction in Apple's long-term competitive moat, capital allocation discipline, and valuation at current levels, providing a powerful endorsement to institutional investors amid market volatility.

• JPMorgan Chase authorized a $5 billion share repurchase program, effective immediately, following a strong first quarter in which net income exceeded $6.2 billion and return on equity reached 15.3%. • CEO Jamie Dimon stated that the buyback reflects management confidence in the bank's capital position and long-term earnings trajectory despite macroeconomic headwinds. • The announcement signals investor-friendly capital allocation policies among major financial institutions, supporting bank stock valuations and demonstrating the sector's resilience amid ongoing rate cut speculation.

• Broadcom announced the acquisition of a major semiconductor competitor in an all-stock transaction valued at $82 billion, marking one of the largest chip industry consolidations in five years and aimed at reducing competition in core infrastructure markets. • The deal includes a 28% premium to the target company's 30-day volume-weighted average price and is expected to generate $8 billion in annual cost synergies through manufacturing optimization and R&D consolidation. • Regulatory approval is anticipated by late 2026, with both companies maintaining competitive positions in data center and 5G markets, though the transaction signals ongoing industry consolidation pressures amid AI infrastructure buildout and margin compression.

• The U.S. Bureau of Labor Statistics reported 145,000 nonfarm payroll additions in March, modestly below the 165,000 forecast but within a range suggesting labor market deceleration without crisis-level deterioration. • The unemployment rate remained flat at 3.9%, while average hourly earnings grew 3.8% year-over-year, slightly below the 4.0% pace in February and indicating moderating wage pressures that support the Fed's inflation narrative. • Economists cited seasonal adjustments and service sector softness as factors in the slower jobs growth, though private payroll strength and continued hiring in healthcare and professional services suggest underlying economic resilience despite recent market volatility.

• The Federal Reserve indicated openness to a 25 basis point rate cut at its May meeting after the March Consumer Price Index came in at 2.3% year-over-year, marking the lowest inflation reading in two years and easing pressure on monetary policy. • Fed Chair Jerome Powell stated in prepared remarks that the central bank will "monitor incoming data carefully" and emphasized the bank's commitment to price stability while supporting employment. • Market expectations for rate relief have strengthened, with futures pricing in approximately 65% probability of a May cut, signaling investor confidence that the inflation trajectory has stabilized sufficiently for policy accommodation.

• The 10-year Treasury yield declined 18 basis points to 3.82% following the cooler-than-expected inflation reading, marking the steepest single-day drop in three months and reflecting a significant repricing of Fed rate cut probability. • Bond investors rushed into longer-duration securities as real yields compressed, with the 2-year Treasury sliding 12 basis points to 3.45%, indicating heightened expectations for near-term monetary easing. • The yield curve steepening trend accelerated, with the 10-2 spread widening to 37 basis points, suggesting market consensus that the Fed will begin cutting rates this spring while maintaining a measured approach to further reductions.