Oil Falls on Hormuz Hopes | Closing Bell

Summary

• Oil prices (Brent) reversed gains and fell late in the session, contributing to an equity market turnaround. The drop was linked to optimism over potential U.S./Israel actions to secure the Strait of Hormuz.
• Gold was notably weak, down 3-4% on the day, and did not participate in the intraday reversals seen in stocks, bonds, and oil, potentially reflecting inflation concerns.
• The S&P 500 closed slightly lower. Energy was the top-performing sector (+1.5%), while Materials led losses (-1.6%).
• Within Energy, outperformance was concentrated in oilfield services & equipment companies (e.g., Baker Hughes, SLB, Apache). The thesis linked their strength to potential Middle East reconstruction needs and U.S. energy security builds.
• Micron Technology shares fell after earnings. The company guided to higher-than-expected capital expenditure ($25B vs. $22.4B est.) to meet AI-driven memory chip demand, sparking concerns the cycle may have peaked.
• Fannie Mae and Freddie Mac shares were highly volatile, plunging intraday before closing sharply higher. The move reflects investor doubt about the Trump administration's ability to execute a public offering of the mortgage giants.
• Boston Scientific shares fell after a New York Times report revealed previously undisclosed FDA findings of issues with a pacemaker battery.
• Treasury yields were mixed; the 2-year rose (markets pricing out 2024 Fed cuts) while the 30-year fell.
• Some asset managers (Point72, Balyasny) are banning employee trading in prediction markets due to compliance and reporting challenges, drawing parallels to early crypto adoption.
• FedEx reported a strong earnings beat and raised full-year EPS guidance significantly ($19.30-$20.10 vs. $18.71 est.). The results are seen as a barometer for the global economy, with upcoming commentary on war impacts (fuel, demand) being key.