Markets Open May Under Pressure 04/05/2026

HOT stories for today

Market wrap:

• U.S. stocks pushed further into record territory Friday, with the S&P 500 and Nasdaq Composite notching fresh intraday and closing highs as investors weighed prospects for a Middle East de-escalation against lingering skepticism from President Donald Trump. The S&P 500 advanced 0.3%, while the tech-heavy Nasdaq gained 0.9%. The Dow Jones Industrial Average lagged, falling 152.87 points, or 0.3%. Risk sentiment improved after Iran reportedly submitted a revised peace proposal via Pakistani mediators, fueling hopes for a possible settlement with the U.S. Trump later tempered that optimism, saying he was dissatisfied with Tehran’s offer and that Iran was seeking a deal only “because they have no military left.” Equities have rallied to records in recent sessions, supported by Middle East cease-fire hopes and a resilient first-quarter earnings season.
• Bank of America strategist Nigel Tupper said the backdrop still leaves room for further gains. In a Sunday post on Truth Social, Trump announced “Project Freedom,” a U.S.-led effort to help release cargo ships from nations not involved in the conflict that remain stranded by the Strait of Hormuz closure. The initiative is set to begin Monday, he said. The key data point this week will be Friday’s April payrolls report at 8:30 a.m. New York time. Economists surveyed by Dow Jones expect the U.S. to have added 53,000 jobs, down sharply from 178,000 previously, with unemployment holding at 4.3%. Earnings from Loews, Norwegian Cruise Line and Tyson Foods are due before Monday’s open.

Sell in May? Markets Aren’t Listening

• The old Wall Street mantra “sell in May and go away” is once again being challenged as global stocks continue their record-setting run. Markets entered May with strong momentum after a standout April for equities on both sides of the Atlantic. Europe’s STOXX 600 and Germany’s DAX posted their best monthly performances since January 2025, while Italy’s FTSE MIB surged nearly 9% for its strongest month in more than two years. In the U.S., the S&P 500 and Nasdaq delivered their best monthly gains in around six years, supported by resilient earnings and optimism that tensions in the Middle East could ease in the coming months. Historical performance also casts doubt on the seasonal trade. According to JPMorgan, the S&P 500 has averaged gains of 1.5% in May and 1.9% in June over the past decade, before rising an average 3.4% in July.
• Deutsche Bank reached a similar conclusion in Europe, finding that a “sell in May” strategy underperformed a simple buy-and-hold approach in 25 of the past 39 years for the STOXX 600. Investors are also preparing for another busy stretch of earnings, with major European banks including UniCredit, HSBC and Commerzbank set to report alongside companies such as Shell and Novo Nordisk. Still, caution remains in the background. Federal Reserve Chair Jerome Powell recently warned that inflation remains elevated, while ECB President Christine Lagarde said policymakers are watching for the impact of supply shocks. For now, however, markets appear more focused on earnings resilience and geopolitical optimism than seasonal trading rules.

Stocks on the move:

• Apple (AAPL): Shares rose 3.5% after earnings and revenue beat estimates, though iPhone sales missed expectations again.
• Roku (ROKU): Shares jumped 7% after first-quarter revenue and adjusted EBITDA topped forecasts, with upbeat current-quarter guidance.
• Estee Lauder (EL): Shares climbed more than 11% after stronger sales, a raised annual forecast and plans for further job cuts.
• Amgen (AMGN): Shares slipped nearly 2% after the biotech company only modestly raised its full-year earnings outlook.
• Rivian (RIVN): Shares fell almost 3% despite a narrower-than-expected loss and slightly stronger revenue.

Watchlist: TSN, L, PLTR, MSFT, AMZN, AAPL, ROKU, AMGN, SNDK

Key Economic Events Today:

EST time

10:00 am: USD Factory Orders
12:50 pm: USD FOMC Member Williams Speaks


Earnings

BMC (Before Market Open): Loews Corp. (L), Tyson Foods (TSN)

AMC (After Market Close): Palantir Tech. (PLTR), Vertex Pharma (VRTX), Williams Companies (WMB), Diamondback Energy (FANG), ON Semiconductor. (ON)

 

The TEFS Analyst team wishes you a successful day!