San Francisco Diesel Prices Surpass $8 per Gallon Amid Nationwide Surge

• U.S. stock futures were slightly down or mixed on Monday morning as investors reacted to stalled peace talks between the United States and Iran. • The geopolitical tension created uncertainty in markets, with traders reassessing risk positions amid the diplomatic impasse. • Energy and defense sectors showed particular sensitivity to the developments, reflecting concerns about potential escalation.

• The Federal Reserve released minutes from its April 16 policy meeting, revealing internal division over the appropriate timeline for interest rate cuts, with several governors questioning whether inflation has declined sufficiently to warrant near-term reductions. • Hawks on the committee expressed concern that premature rate cuts could reignite price pressures, while doves argued that pausing at 5.5% risks unnecessarily constraining growth and employment, setting the stage for a contentious May 2 vote. • Market reactions to the minutes were mixed, with bond futures pricing in only a 28% probability of a rate cut by July 2026, down from 35% before the release, while equity index futures declined 0.6% on expectation of extended higher rates.

• JPMorgan Chase reported first-quarter net income of $13.2 billion, up 15% compared to Q1 2025, driven by higher net interest income and a 12% increase in investment banking revenues. • CEO Jamie Dimon stated that the bank is "well-positioned" despite macro uncertainties, with the firm raising its dividend by 5% to $1.16 per share and repurchasing $11 billion in stock during the quarter. • The bank's strong results contrasted with broader financial sector concerns about rising loan losses and credit quality, though JPMorgan's net charge-offs remained stable at 0.31% of loans.

• The U.S. Treasury successfully auctioned $42 billion in new 10-year notes on April 25, 2026, with the coupon rate settling at 4.38% amid continued demand from foreign central banks and domestic pension funds. • Bid-to-cover ratio reached 2.38x, slightly above the six-month average, indicating solid underlying demand despite elevated yields and concerns about federal deficit growth, which is projected to reach $1.8 trillion for fiscal year 2026. • The auction results suggest stabilization in long-term borrowing costs after weeks of volatility, potentially reducing pressure on the Federal Reserve to adjust its benchmark rate at the May 2 policy meeting.

• Berkshire Hathaway's cash and equivalents surged to $168 billion at the end of Q1 2026, its highest level in over a decade, as Warren Buffett continued to reduce equity holdings amid concerns over elevated asset valuations. • The conglomerate reduced its Apple stake by 8% during the quarter and trimmed Bank of America holdings further, citing a lack of compelling investment opportunities in current market conditions. • Investment income from fixed-income holdings generated $3.2 billion in the first quarter alone, demonstrating how Berkshire's massive cash reserve is now earning meaningful returns in a higher-rate environment.

• Tesla's stock fell 3.2% on April 26 after the company reported first-quarter global deliveries of 389,000 vehicles, missing consensus expectations of 410,000 units and marking the weakest quarterly performance in two years. • Management attributed the shortfall to supply chain disruptions at the Berlin and Texas Gigafactories, as well as slower-than-anticipated demand in European and Chinese markets, particularly for the Model 3 and Model Y lineup. • The miss reignites concerns about Tesla's ability to sustain its 50% annual growth target and prompted three major brokerages to lower 2026 earnings forecasts by 8–12%, citing heightened competition from legacy automakers' EV offerings.

• Broadcom provided second-quarter guidance of $9.2 billion in revenues, exceeding analyst estimates by 6%, driven by surging demand for data center semiconductors and artificial intelligence accelerators from cloud computing providers. • CEO Hock Tan stated that AI-related semiconductor orders are tracking 40% above historical averages, with major customers committing to long-term capacity agreements through 2028, signaling sustained strong demand. • The robust guidance helped lift semiconductor index ETFs 2.1% during extended trading and sparked upgrades from multiple analysts who raised price targets on Broadcom by 8–12% based on improved visibility into AI infrastructure spending cycles.

• Pharmaceutical giants Eli Lilly and Pfizer announced a strategic research collaboration focusing on oncology and immunology, with combined commitments totaling $4.8 billion over five years to accelerate drug development and clinical trial timelines. • The partnership will leverage Eli Lilly's metabolic disease expertise and Pfizer's vaccine platform capabilities to pursue combination therapies for hard-to-treat cancers, with initial clinical trials expected to commence in mid-2027. • Industry analysts view the deal as emblematic of Big Pharma consolidating R&D resources amid rising drug development costs exceeding $2.6 billion per approved medication, while also signaling confidence in oncology market growth.

• The Nasdaq Composite fell 0.48% to 16,240.35 on Monday, April 26, driven by weakness in mega-cap technology stocks including Apple (down 1.2%) and Microsoft (down 0.9%), as investors reassess growth expectations ahead of the Federal Reserve's May meeting. • Treasury yields climbed to 4.35% for the 10-year note amid inflation concerns, pressuring valuations of rate-sensitive tech companies and spurring profit-taking after recent market gains. • The decline reflects growing caution among portfolio managers about earnings sustainability in the second quarter, with earnings guidance from major tech firms expected to dominate trading through early May.

• The Conference Board Consumer Confidence Index declined to 98.3 in April 2026, down 4.2 points from March, marking the steepest monthly drop since July 2025 as Americans express renewed concern about inflation and job security. • Consumers' expectations for future economic conditions weakened notably, with the forward-looking component falling 6.8 points as respondents cited concerns about rising prices for groceries, gasoline, and housing costs. • The decline suggests potential headwinds for Q2 consumer spending and retail sales, pressuring guidance from discretionary retailers and restaurant operators ahead of earnings season.

• Delta Air Lines reported first-quarter net income of $1.8 billion, up 22% year-over-year, benefiting from strong leisure and business travel demand with average fares rising 8% despite lower capacity growth across the industry. • CEO Ed Bastian stated that forward bookings through summer 2026 indicate "resilient demand," with premium cabin bookings up 15%, offsetting concerns about potential economic slowdown and suggesting corporate travel spending remains solid. • The strong results bolstered airline sector sentiment, lifting Southwest Airlines and United Airlines stocks by 2.4% and 1.9% respectively on optimism about sustained pricing power and margin expansion through peak summer travel season.

• The S&P 500 index closed at 6,450.06, down 16.52 points or 0.26%, reflecting cautious trading in US equities over the past day. • Broader market showed divergence with Dow Jones ETF down 0.16% at 492.21, while S&P ETF rose 0.77% to 713.94 and Nasdaq QQQ gained 1.88% to 663.88. • Gold prices fell to 4,725.40 per ounce, down 15.50, amid shifting investor risk appetite ahead of economic data releases.