Key Takeaways
- Nvidia (NVDA) shares surged 5% to a record high, propelling the NASDAQ 100 up 1.5% as tech remains the primary driver of market momentum.
- Israeli Prime Minister Netanyahu announced the start of a "historic peace" process with Lebanon while simultaneously vowing to continue military strikes against Hezbollah.
- The U.S. Department of Justice is expected to drop its criminal investigation into Federal Reserve Chair Jerome Powell following significant pressure from the Senate.
- The United States and European Union signed a landmark Memorandum of Understanding (MoU) on critical minerals to secure supply chains and counter non-market trade policies.
- Asian refineries have begun slashing output as the ongoing Iranian port blockade by U.S. forces severely chokes global crude supplies.
Tech Sector Surges as Nvidia Hits New Peak
The technology sector led a broad market rally on Friday, with the NASDAQ 100 rising 1.5%. This growth was spearheaded by Nvidia (NVDA), which saw its shares increase by 5%, setting the stage for a record-high close. Investors remain bullish on the semiconductor giant as it continues to dominate the AI-driven market landscape.
In broader economic data, the University of Michigan Consumer Sentiment for April was finalized at 49.8, slightly exceeding market estimates of 48.5. However, the Kansas City Fed Services Activity index fell to 3, significantly missing the expected mark of 10, suggesting some cooling in the domestic services sector.
Middle East Tensions and Diplomatic Maneuvers
Prime Minister Benjamin Netanyahu stated that Israel is working in "full cooperation" with President Trump to achieve a historic peace agreement with Lebanon. Despite these diplomatic efforts, Netanyahu emphasized that Israel retains "complete freedom of action" and will continue to attack Hezbollah to restore security to northern Israel.
Meanwhile, Lebanese Deputy Prime Minister Tarek Metri indicated that Lebanon is negotiating to avoid a "prolonged war" but remains firm in its refusal to accept any form of occupation. In a separate development, Hezbollah legislators dismissed the idea of a ceasefire extension as "meaningless," signaling continued volatility in the region.
U.S. Policy Shifts and the Federal Reserve
The U.S. Department of Justice is reportedly prepared to drop its criminal probe into Federal Reserve Chair Jerome Powell. The move follows intense scrutiny and pressure from Senators, potentially removing a significant cloud of uncertainty over the central bank's leadership.
On the trade front, U.S. Secretary of State Rubio and Trade Representative Greer announced a new agreement with the EU regarding critical minerals. The plan includes exploring trade measures such as border-adjusted price floors to protect local industries from non-market policies affecting essential supply chains.
Energy Crisis and Global Security
The energy market is facing increasing pressure as Asian refineries slash production due to a shortage of Iranian crude. U.S. CENTCOM confirmed that the blockade of Iranian ports continues, with 34 vessels redirected to date. This has led to concerns that the Iranian regime may soon be forced to shut down oil wells due to a lack of storage capacity.
In Eastern Europe, Ukrainian President Zelenskyy met with Saudi Crown Prince Mohammed bin Salman to discuss a strategic security arrangement covering air defense, energy cooperation, and food security. Additionally, Russian authorities reported that a fire at the Tuapse Black Sea port has been successfully extinguished, though regional stability remains a primary concern for global trade.
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.