Daily News
Asia-Pacific Markets Mostly Fall as Oil Climbs on Iran Tensions, Fed Holds Rates
30 April'26
Today in Brief
Asia-Pacific markets mostly fall as oil climbs on Iran tensions, Fed holds rates.
Global markets, commodities, and geopolitical tensions continue to drive sharp swings across regions.
Asia-Pacific markets mostly fall as oil climbs on Iran tensions, Fed holds rates
Asia-Pacific markets mostly fell Thursday, tracking overnight losses in key Wall Street benchmarks as oil prices hit a wartime high following a report that the U.S. military would brief President Donald Trump on potential action against Iran, while the Federal Reserve held interest rates steady. Oil climbed after Axios, citing two sources with knowledge of the matter, reported that the U.S. Central Command was set to present Trump plans for possible military action against Iran. Trump had earlier reportedly rejected Tehran's proposal to reopen the Strait of Hormuz, signalling the naval blockade will remain in place until a broader nuclear agreement is reached.
Dow slides more than 250 points, posting a fifth day of losses, as oil prices rise
The Dow Jones Industrial Average ended Wednesday lower as oil prices continued their rally amid a U.S. blockade of Iranian ports and after the Federal Reserve left its key interest rate unchanged. Traders also awaited quarterly earnings from four of the "Magnificent Seven." The 30-stock index fell 280.12 points, or 0.57%, to close at 48,861.81 and notch a fifth straight losing day. The S&P 500 inched down 0.04% to close at 7,135.95, while the Nasdaq Composite crept up 0.04% to 24,673.24. Oil prices rose for another day on Wednesday after The Wall Street Journal, citing U.S. officials, reported that President Donald Trump has told aides to prepare for an extended blockade of Iran.
Gold traded around $4,550 an ounce on Thursday, hovering at one-month lows
Gold traded around $4,550 an ounce on Thursday, hovering at one-month lows as surging energy costs intensified inflation worries and strengthened expectations that major central banks may need to raise interest rates. President Donald Trump said the US would keep its naval blockade on Iran in place until it agrees to a nuclear deal, while Tehran accused Trump of attempting to force the country into submission through economic pressure and internal divisions. The prolonged Middle East conflict and the near-shutdown of the Strait of Hormuz unsettled global markets, prompting traders to scale back bets on rate cuts this year and instead begin pricing in the possibility of a hike by 2027.
WTI crude futures jumped above $110 per barrel on Thursday
WTI crude futures jumped above $110 per barrel on Thursday, advancing toward their highest levels since 2022 following reports that the US military would brief President Donald Trump on potential action against Iran, heightening fears that the conflict could escalate further. Trump also reportedly rejected Tehran's proposal and reaffirmed that the US will maintain its naval blockade until a nuclear agreement is reached, further weakening prospects for a diplomatic resolution. Iranian authorities warned of retaliation if the blockade continues, accusing Trump of attempting to force Tehran into submission through economic pressure and internal destabilization.
Fed holds rates steady but with highest level of dissent since 1992
An unusually divided Federal Reserve on Wednesday held its key interest rate steady as policymakers grappled with the policy impact of persistent inflation and awaited a looming leadership transition at the central bank. In what may have been Chair Jerome Powell's final meeting at the helm, the rate-setting Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5%-3.75%. Markets had been pricing in a 100% chance of no change. However, the meeting saw a dramatic turn amid a groundswell of officials who opposed messaging that further rate cuts could be ahead. Amid expectations for a routine vote to hold the benchmark funds rate steady, the FOMC instead was split along 8-4 lines, with officials expressing different reasons for their vote. The last time four FOMC members dissented was in October 1992.
Trump threatens Iran with AI picture of himself with a gun: 'No more Mr. Nice guy!'
U.S. President Donald Trump threatened Iran in a Truth Social post on Wednesday morning, saying the country "better get smart soon!" "Iran can't get their act together. They don't know how to sign a nonnuclear deal. They better get smart soon!" Trump posted on the social media platform Truth Social shortly after 4 a.m. ET on Wednesday. The post was accompanied by an AI-generated picture of Trump holding a gun with explosions in the background, and the words "NO MORE MR. NICE GUY!" The post comes as the crucial Strait of Hormuz stays blockaded and as the status of talks with Iran remains uncertain, with attempts to continue negotiations in the last few days seemingly stalled. U.S. negotiators were due to travel to Islamabad for more talks last weekend, but Trump cancelled the trip.
Trump Fed pick Kevin Warsh clears key Senate hurdle, teeing up final vote
The Senate Banking committee on Wednesday voted to advance Kevin Warsh's nomination to lead the Federal Reserve, teeing up President Donald Trump's pick for a final confirmation vote in the Republican-controlled Senate. The vote fell along party lines, with all 13 Republican members voting in favor of the nominee and all 11 Democrats voting against him. It was the first fully partisan vote on a Fed chair nominee in the committee's history, Sen. Elizabeth Warren, D-Mass., said in a press release. Warren, the banking panel's ranking member, slammed Warsh before the vote, warning that his confirmation would erode the central bank's independence from the executive branch.
China factory activity tops expectations in April — but growth slows as new orders soften
China's factory activity topped analysts' expectations in April, although growth slowed from the prior month when it hit a year-high, as new orders saw a slowdown. The official manufacturing purchasing managers' index reading of 50.3 was higher than the 50.1 expected by Reuters-polled economists. Non-manufacturing PMI fell into contraction territory at 49.4, compared to the 50.1 seen in March, with activity in the services and construction sectors both shrinking. A figure above 50 indicates expansion, while below shows a contraction in activity. China's composite PMI dipped to 50.1 from March's 50.5. While growth in new orders slowed, Zhou said that output and new orders remain key supports as both continue to be in expansion territory. The new order sub-index fell to 50.6 in April from 51.6 in the prior month.
Alphabet ups 2026 capex to as much as $190 billion, expects to 'significantly increase' in 2027
Alphabet reported first-quarter earnings after the bell Wednesday, showing revenue that topped expectations boosted by its surging cloud business. Shares climbed following the report. The company beat Wall Street's expectations for revenue, growing 20% from last year and marking its highest rate of growth for any quarter since 2022. "Our enterprise AI solutions have become our primary growth driver for cloud for the first time in Q1," CEO Sundar Pichai told analysts on the earnings call. Gemini Enterprise's paid monthly active users grew 40% from the previous quarter, Pichai said in a release. The company also updated its 2026 capital expenditure guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion.
Meta stock drops on quarterly results as 'internet disruptions' in Iran drag down user numbers
Meta shares fell about 7% in extended trading on Wednesday after the company reported lower-than-expected capital expenditures, or capex, and missed on user growth. Meta attributed its quarter-over-quarter drop in users in part to "internet disruptions in Iran." Revenue climbed 33% from $42.3 billion a year earlier, marking the fastest quarter for growth since 2021. The jump reflects Meta CEO Mark Zuckerberg's focus on artificial intelligence investments, which have yet to produce new revenue streams but have strengthened the company's core advertising business.
Amazon earnings beat expectations with strong cloud growth
Amazon on Wednesday posted better-than-expected earnings and revenue for the first quarter, and reported cloud sales that topped analysts' expectations. The stock was up more than 4%, after bouncing around in extended trading. Revenue in Amazon's cloud segment increased 28% year over year to $37.59 billion, marking its fastest growth in more than three years. Wall Street had expected AWS sales to grow 26%. Amazon and other big tech companies have been trying to justify their hefty artificial intelligence spending, which could approach $700 billion in 2026. Amazon in February projected its capital expenditures will reach $200 billion in 2026, a sharp increase from last year. The company recently announced a host of AI-related deals with OpenAI, Anthropic and Meta, which could help ease investor concerns about when its spending will deliver returns.
Microsoft calls for $190 billion in 2026 capital spending on soaring memory prices
Microsoft reported better-than-expected quarterly results on Wednesday and told investors that capital expenditures for the year will reach $190 billion due to soaring memory costs. Net income of $31.78 billion, or $4.27 per share, was up from $25.82 billion, or $3.46 per share, in the same quarter a year earlier. Adjusted earnings exclude a $14 million decrease in net income from Microsoft's OpenAI investments. With respect to guidance, Microsoft's finance chief, Amy Hood, called for $86.7 billion to $87.8 billion in fiscal fourth-quarter revenue. The middle of the range, at $87.25 billion, was below LSEG's $87.53 billion consensus. Microsoft foresees Azure cloud growth between 39% and 40% at constant currency, above StreetAccount's 37% consensus.
