US Stocks Mixed Amid Middle East Tensions and Strong Earnings Outlook

• US GDP expanded at a 2.0% annualized rate in Q1 2026, rebounding from 0.5% in the prior quarter, driven by government spending, exports, and investment. • Consumer spending stayed strong in March, bolstered by rising personal income and consumption. • Manufacturing PMI hit its strongest since May 2022 per S&P Global, though possibly due to inventory buildup rather than demand.

• The Federal Reserve maintained interest rates at 3.50%-3.75% last week, citing continued economic expansion but persistent inflation linked to energy prices. • Inflation remains elevated with PCE price index up slightly in March to 3.5% year-over-year. • Decision supports market optimism, contributing to S&P 500 nearing its January record high despite Middle East risks.

• Nasdaq and S&P 500 declined on May 4, 2026, following UAE's report of intercepting missiles from Iran amid escalating regional tensions. • Move counters last week's gains where NASDAQ posted a 10-day winning streak led by mega-cap tech on AI optimism and earnings. • Oil and US dollar rose, while gold and silver fell as investors favored risk assets despite conflict worries.

• Key Indian stocks including Kotak Mahindra Bank (trading at 383.30, up 0.35%), DMart, Vodafone Idea, Nestle India, and Coal India featured prominently in market news on May 4, 2026. • Nifty Financial Services index rose 1.12% to 25,944.50, gaining 287 points, amid sector rotation post-election outcomes. • Other highlights include HUL, Bajaj Finance, and Adani stocks, with trading guides recommending buys like Gujarat Fluorochemicals and Kalyani Steels for up to 8% gains.

• Indian benchmark indices ended positively on May 4, 2026, with Nifty 50 closing at 24,100 after gaining 122 points and Sensex up 356 points at 77,488 amid volatile trading. • Realty, metal, and healthcare sectors led broad-based gains, driven by falling crude oil prices and improved investor sentiment following state election results, while IT stocks lagged. • Top Nifty gainers included Adani Ports (up 5%), Adani Enterprises, Eicher Motors (up 3%), Hindustan Unilever, and Shriram Finance; laggards were Bharti Airtel, Kotak Mahindra Bank, Dr. Reddy's, ONGC, and TCS.

• Singapore's real estate investment volume jumped 364% in the first quarter of 2026 compared to the same period last year, according to CBRE data released today. • The surge reflects strong investor confidence amid regional economic recovery, with total transactions reaching S$4.2 billion across office, retail, and industrial sectors. • This growth underscores Singapore's role as a safe-haven market in Southeast Asia, potentially attracting more foreign capital amid global uncertainties.

• Japan announced plans to establish a ¥500 billion fund aimed at reinforcing economic security, with implications for Southeast Asian supply chains. • The fund will support critical technology investments and diversification away from high-risk dependencies, targeting partners in ASEAN nations like Indonesia and Vietnam. • This initiative addresses vulnerabilities exposed by recent geopolitical tensions, enhancing regional resilience against disruptions.

• Southeast Asia's economic resilience is under pressure from a fragmented global economy, requiring deeper intra-regional integration, according to The Business Times analysis. • Key challenges include trade barriers and supply chain shifts, with ASEAN's intra-regional trade at just 25% of total commerce. • Strategic engagement with partners like the US, China, and EU is essential to mitigate deglobalization risks and sustain growth above 4.5% annually.

• Infosys reported Q4 net profit up 21% to Rs 8,501 crore, though shares fell 3.6% on weak revenue guidance. • IT sector faces pressure from BFSI weakness and higher costs, impacting peers like Cyient. • Results highlight mixed quarterly outcomes in tech amid global demand shifts.

• Government considers steps to attract dollar inflows amid rupee depreciation pressures. • Policy moves aim to stabilise currency and support economic indicators. • Initiative critical for managing trade deficits and foreign reserves.

• Singapore and New Zealand signed the world's first legally binding bilateral agreement to maintain flows of essential supplies including food, fuel, healthcare products, and construction materials during crises, witnessed by both prime ministers at the Singapore-New Zealand Annual Leaders' Meeting. • The Agreement on Trade in Essential Supplies commits both governments not to impose unnecessary export restrictions on agreed essential goods and establishes a framework for facilitating goods movement and information sharing during supply chain disruptions. • The agreement will be incorporated into the existing free trade agreement between the two countries after domestic procedures are completed, providing businesses and consumers with greater confidence and supply chain stability in the region.