Key Takeaways
- Intel (INTC) shares rocketed 26% to a session high after the company reported a massive Q1 earnings beat, with EPS of $0.29 vastly outperforming the $0.01 analyst consensus.
- Beijing has moved to restrict US investment in critical domestic technology firms, specifically targeting ByteDance, as China's Foreign Direct Investment (FDI) fell 7.3% year-to-date through March.
- The International Energy Agency (IEA) warned that the global gas crisis triggered by the US-Israel-Iran conflict could last for two years, with 20% of global LNG supply currently disrupted.
- Israel's Defense Ministry has shifted its strategic focus to Iranian economic infrastructure, signaling that any resumption of hostilities will target the energy sector to inflict maximum financial damage.
- Japan is bypassing the Strait of Hormuz for more than half of its crude imports starting in May, quadrupling its intake of US crude to mitigate the impact of the regional blockade.
Intel Rebounds as "CPUs Become Cool Again"
Intel (INTC) saw its stock price surge 26% on Friday, reaching a session high following a blockbuster Q1 2026 earnings report. The semiconductor giant reported revenue of $13.6 billion, an 11% beat over Wall Street estimates, driven by a resurgence in data center demand and progress in its 18A manufacturing process.
The rally marks a significant turnaround for the company, which had struggled since a 26% single-day drop in August 2024. Analysts noted that while GPUs remain dominant in AI training, Intel's server CPUs are seeing renewed demand for AI orchestration, leading CFO David Zinsner to remark that the "CPU has become cool again."
China Escalates Tech War Amid Sliding FDI
The Chinese government has officially decided to restrict US investment in ByteDance and other "important local technology companies." This move follows the recent forced restructuring of TikTok's US operations into a joint venture led by Oracle (ORCL) and Silver Lake, a deal Beijing has viewed with increasing hostility.
Simultaneously, China's economic data continues to show signs of strain, with Foreign Direct Investment (FDI) falling 7.3% year-over-year in March, a further decline from the 5.7% drop recorded in the previous period. In an effort to offset capital flight, regulators announced they will now allow qualified foreign investors to trade in local bond futures.
Global Energy Markets Brace for Two-Year Crisis
The International Energy Agency has labeled the current situation the "biggest energy crisis in history," warning that the gas shortage resulting from the war in the Middle East may persist for two years. The closure of the Strait of Hormuz has effectively trapped nearly one-fifth of the world's LNG supply, causing spot prices in Asia to spike by as much as 143%.
In response, Japan's Prime Minister Sanae Takaichi confirmed that the country will bypass the Hormuz route for the majority of its crude imports in May. Japan is increasingly relying on US crude and alternative routes through Saudi Arabia's Yanbu and the UAE's Fujairah to maintain its eight-month strategic reserve.
Israel Targets Iranian Economic Infrastructure
Israeli Channel 12 reports that the country's military planners have set new targets within Iran, focusing specifically on infrastructure and the energy sector. The Defense Minister reportedly instructed forces to build on previous operations with a goal of inflicting significant economic damage rather than focusing solely on military assets.
While Iran is set to resume some foreign flights from Tehran this Saturday, the regional security environment remains volatile. In the Baltic Sea, oil tankers carrying Russian crude have begun avoiding Swedish waters, further complicating global maritime logistics and insurance costs.
Commodities: Aluminum Spread Hits Record Backwardation
In the metals market, LME Aluminum has experienced its largest backwardation since 2024, signaling acute near-term supply shortages. This market structure, where spot prices trade significantly higher than future contracts, reflects the broader industrial anxiety over supply chain disruptions and rising energy costs for smelting operations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.