Geopolitics Weigh on Sentiment

Pre-market futures slipped as geopolitical tensions in the Strait of Hormuz and the abrupt resignation of the U.S. Navy head weighed on sentiment, leaving a flat-to-lower tone for the week. Major indexes are softer — the Dow off about 271 points (-0.55%) and the S&P 500 and Nasdaq down ~0.31% — while small caps hold relatively steady. Economic data showed initial jobless claims ticked up to 214K (vs. 212K expected) and continuing claims rose to 1.821M, still near multimonth lows. Q1 earnings are driving idiosyncratic moves: Tesla beat EPS ($0.41) and revenue ($22.39B) but traded down about 3% pre-open amid xAI-related costs. Other notable beats include American Express, NextEra Energy, Honeywell and Union Pacific; Intel and Newmont are due after the close. Overall the piece is market commentary highlighting geopolitical risk as the main near-term drag, offset by broadly solid corporate results and still-healthy employment metrics, producing a mixed market outlook.