S&P 500 Dips to 7,337 as Barclays Warns Rally Fragile on Semis, Hormuz Risks

Barclays strategist Emmanuel Cau cautioned on May 8 that the S&P 500's advance to 7,337.11 (-0.38%) remains fragile, driven narrowly by semiconductors/AI amid extended chip trade and Strait of Hormuz risks. The week started with Danske Bank's May 4 note highlighting Q1 2025 earnings strength—S&P 500 +8% YoY, Europe +6%, Asia +7%—and 5-7% full-year forecast anchoring equities despite Iran tensions. Barclays warned May 6 of limited upside from $100+ oil and shrinking buffers despite 10% European rebound, favoring US overweight; Rodda affirmed May 7 earnings resilience at 7,365 (+1.46%).