Oil Spikes on Renewed US-Iran Conflict
Oil prices surged as fighting between the US and Iran reignited fears of Middle East supply disruptions, pushing geopolitical risk to the front of energy markets. Brent and US crude climbed sharply after President Trump threatened to bomb Iran for a second consecutive day and reimposed the US naval blockade, retaliating for attacks on tankers moving through the Strait of Hormuz. Trump said he considers the ceasefire over. Both US crude and Brent jumped more than 5%, then eased off session highs after he later said he did not believe Iran and the US would return to full-scale war. US oil sat up more than 5% above $74 a barrel; Brent was more than 6% higher, just below $79. Trump was threatening to hit Iran hard again overnight, keeping the oil picture and international market reaction in focus.
Rotation Out of Korea Into Chinese Tech
The session's dominant flow was a rotation out of South Korea into Chinese tech, visible in the EWY versus the KWEB Chinese internet ETF, which moved in opposite directions earlier before the EWY recovered. Samsung and SK Hynix extended their weekly slide, dragging the Kospi into bear market territory. That weakness did not spread to China. Hong Kong benefited from the exodus out of Korea. Alibaba ripped 12% overnight with follow-through in its ADR, a move attributed in part to a report that its Q1 financials show e-commerce profits resuming growth. That reaction stands against the market's response to Samsung's preliminary earnings.
Several catalysts supported Chinese equities. Nvidia's H200 was reportedly given the green light. President Xi called for the country to speed up self-reliance. Apple reportedly began testing Chinese memory company CXMT's DRAM chips for devices sold in China; CXMT is the fourth-largest DRAM producer, behind SK Hynix, Samsung, and Micron.
Waymo Expands Its Robo-Taxi Lead
Waymo is accelerating its nationwide robo-taxi expansion, launching fully driverless rides for select users in San Diego and beginning testing in Las Vegas, Tampa, and Denver, extending its lead in autonomous ride-hailing. Rivals Tesla and Zoox continue building out their own fleets. The question now is how fast Waymo can scale into new markets, grow paid rides, and convert its early lead into a profitable business. R&D expenses are heavy enough that the operation is not profitable. The expansion raises the stakes on whether robo-taxis become the next major growth driver for Alphabet beyond advertising and cloud.
What Comes Next
PepsiCo reports earnings tomorrow morning, watched for clues on consumer health and whether the company can reignite demand after softer snack sales. Focus points: organic revenue growth, pricing versus volume trends, and whether Frito-Lay North America and beverages are rebounding. Management's outlook on margins, consumer spending, tariffs, and full-year guidance will gauge the broader consumer staples sector.
Other data due includes weekly jobless claims on Thursday and existing home sales. Chinese inflation lands overnight, with the PPI versus CPI read pointing to margin pressure.
