【TrueZhuo Finance】U.S.-Iran negotiations outlook unclear; Tesla raises spending expectations

The U.S. and Iran continue to play games in the Strait of Hormuz, with the White House stating that no deadline has been set for Tehran to submit a peace proposal. Tesla's quarterly profit exceeded expectations, and the company significantly increased its capital expenditure budget for this year.

Overnight Highlights

Global financial markets showed divergent trends due to Trump's extension of the U.S.-Iran ceasefire agreement and new changes in the geopolitical situation. Stocks: Boosted by both the extended ceasefire agreement and strong corporate earnings, U.S. stocks rebounded strongly, with the S&P 500 and the Nasdaq both hitting record highs. Bonds: Due to a ship seizure incident in the Strait of Hormuz that tightened the situation again, investor sentiment was cautious, U.S. bond prices fluctuated lower, and yields across all maturities rose slightly. Forex: Safe-haven demand and conflict uncertainty supported the continued strengthening of the U.S. dollar, non-dollar currencies generally weakened, and the euro and yen exchange rates against the dollar came under further pressure. Oil: Concerns about crude oil supply intensified due to falling fuel inventories and reports of attacks on shipping in the Strait, causing oil prices to surge significantly. Metals: After experiencing earlier declines, gold prices stabilized and rebounded with support from bargain-hunting as investors awaited the latest developments in U.S.-Iran negotiations.

International News

The White House denied reports that Trump set the ceasefire deadline at 3-5 days, saying the U.S. is awaiting Iran's response and that Tehran's seizure of ships does not violate the ceasefire agreement. Iranian media said Iran has no plans to negotiate with the U.S. on Friday.

Iranian gunboats fired on several merchant ships in the Strait of Hormuz. U.S. Central Command refuted reports that two Iranian vessels successfully broke through the blockade, saying they had been intercepted by U.S. forces.

A third U.S. aircraft carrier is reportedly expected to arrive in the Middle East within 3 to 5 days. An Iranian Foreign Ministry spokesperson said the country's armed forces are on full alert and prepared for a comprehensive and decisive defense against any threat or provocation.

U.S. federal prosecutor Piro said he will continue to investigate the cost overruns of the Federal Reserve building renovation, reiterating that he will appeal the previous court decision to quash the subpoena.

Trump's chief economic adviser Hassett said he supports Fed Chair Powell's plan to continue leading the Fed as acting chairman if his term expires next month before Warsh's nomination is confirmed by the Senate.

The Philadelphia Semiconductor Index set a record for its longest daily winning streak ever, as investors bet that AI-related demand will drive strong growth in the chip industry.

The U.S. government is close to finalizing a $500 million rescue package for Spirit Airlines (SAVEQ.US) and could hold up to 90% of the airline's shares.

Tesla (TSLA.US) first-quarter profit exceeded expectations. The company said global demand for its electric vehicles is recovering, and its 2026 capital expenditure forecast was significantly raised to over $25 billion.

Texas Instruments (TXN.US) provided a strong revenue outlook for the second fiscal quarter, indicating increased confidence among electronics manufacturers about demand prospects. The stock surged after hours.

Google Cloud (GOOGL.US) launched a series of new artificial intelligence (AI) tools and a new generation of Tensor Processing Units (TPUs), and announced the establishment of a $750 million fund to help drive enterprise AI adoption.

Memory chip giant SK Hynix's first-quarter operating profit quadrupled to a record $25.4 billion, exceeding analyst expectations.

Greater China News

China will curb unreasonable growth in total energy consumption and promote the gradual peaking of coal and oil consumption.

The unemployment rate for China's 25-29 age group in March was significantly higher than the same period last year, reflecting factors such as the accelerated penetration of artificial intelligence.

Germany's economy minister reportedly plans to visit China for the first time from May 26-29 to discuss issues such as Sino-German trade.

Shanghai's GDP grew 5.9% year-on-year in the first quarter of 2026, and total retail sales of consumer goods grew 5.5%.

TSMC (TSM.US) said ASML's (ASML.US) latest chip-making equipment is too expensive, and the company will postpone purchases until after 2029 to save costs. The most advanced A13 chip will go into production in 2029.

The Information reported that Tencent (0700.HK) and Alibaba (9988.HK/BABA.US) are in talks to invest in DeepSeek, which is valued at over $20 billion.

A report shows that China's 360 Digital Security Group has developed an AI-driven software vulnerability discovery tool, benchmarking against the Mythos model.

ExxonMobil (XOM.US) is reportedly considering selling its gas stations in Hong Kong, valued at $500 million to $600 million.

Vanke (2202.HK) has reportedly started the remittance process to pay 40% of the principal of a 2 billion yuan bond maturing on Thursday.

Commodities and Forex Markets

The Bloomberg Dollar Index held steady, with the Norwegian krone outperforming G-10 currencies. Oil prices rose as peace talks between the U.S. and Iran reached a stalemate. Gold prices and base metals on the London market rose on news of the U.S.-Iran ceasefire.

Earnings and Economic Data Focus

U.S. Initial Jobless Claims for the week ending April 18 (in thousands) (Previous: 207, Expected: 210)

U.S. S&P Global Manufacturing PMI Preliminary for April (Previous: 52.3, Expected: 52.5)

Source: Golden Horse Capital Management (Hong Kong) Limited

Author: Terry Chow

Proofreader: Gloria Guo