Key Takeaways
- The U.S. has officially terminated combat operations against Iran that began in February 2026, citing the War Powers Resolution, though military officials have reportedly briefed President Trump on "final blow" strike options if hostilities resume.
- The U.S. Department of Energy will lend 92.5 million barrels from the Strategic Petroleum Reserve (SPR) to energy companies to stabilize supply chains.
- Marubeni (8002) announced a major 60 billion yen share buyback (up to 1.2% of stock) as Japanese government bond (JGB) yields across the curve retreated.
- Huawei expects its AI chip revenue to surge by at least 60% this year, according to the Financial Times, highlighting the rapid expansion of China's domestic semiconductor industry.
- Australia’s Producer Price Index (PPI) cooled to 3.0% YoY in Q1, down from 3.5%, suggesting a potential easing of inflationary pressures in the Asia-Pacific region.
Geopolitical Shifts: Iran Operations End Amid NATO Warnings
The United States has declared an end to active combat operations against Iran under the War Powers Resolution, effective May 1, 2026. A senior U.S. official confirmed that the mission, which commenced in February, has reached its legal termination point. However, tensions remain high as Fox News reports that U.S. Central Command Commander Admiral Brad Cooper has briefed President Donald J. Trump on a suite of "final blow" strike options should the administration decide to resume military action.
Simultaneously, European and NATO officials are expressing grave concerns regarding potential shifts in American foreign policy. In statements to Politico, officials warned that any reduction or withdrawal of U.S. forces from Europe would be an "unwise move" that would come at a "heavy cost" to regional security. These developments have kept safe-haven demand active, though gold prices remained steady as the stagnation of Middle East diplomacy continues to weigh on investor sentiment.
Energy and Commodities: Massive SPR Release to Support Markets
In a significant move to bolster domestic energy security, the United States announced it will lend 92.5 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) to energy companies. This massive liquidity injection into the oil market is intended to mitigate supply volatility. Market analysts suggest the move is a preemptive strike against potential price spikes following the recent period of regional instability.
In the currency and metals markets, the Australian Dollar weakened as persistent Middle East tensions bolstered the U.S. Dollar. Meanwhile, Gold prices held firm but lacked upward momentum, as traders balanced the end of formal U.S. combat operations against the lack of a long-term diplomatic breakthrough in the region.
Japanese Markets: Yields Fall as Marubeni Launches Buyback
Japanese financial markets saw a notable decline in yields on Friday. The 20-year JGB yield dropped 2.5 basis points to 3.370%, while the 2-year yield fell to 1.385%. The Japanese government also moved to manage its debt, offering 4.6 trillion yen in T-bills and 0.25 trillion yen in CPI-linked 10-year bonds with a 0.600% coupon.
Against this backdrop of falling yields, Marubeni (8002) announced it would increase its share buyback program to 60 billion yen. The trading giant aims to repurchase up to 1.2% of its outstanding stock, a move that reflects strong corporate balance sheets despite the Yen's continued weakness. Japan's top currency official, Masato Kanda, notably declined to comment on whether the government has recently intervened in the foreign exchange market.
Tech and AI: Huawei and Xiaomi Report Strong Growth
In the technology sector, Huawei is projecting a massive 60% jump in AI chip revenue for the current year. This growth underscores the company's successful pivot toward domestic AI infrastructure amid ongoing international trade restrictions. In the automotive space, Xiaomi (XIACY) reported a robust performance for its electric vehicle division, delivering more than 30,000 EVs in the Chinese domestic market during April alone.
Meanwhile, OpenAI is facing internal scrutiny. The company’s CFO recently pushed back against reports suggesting that the AI powerhouse is missing its internal sales and user growth targets. The defense comes as competition in the generative AI space intensifies from both domestic U.S. rivals and international players like Huawei.
U.S. Housing: The "Empty Home" Tax Trap
A new report from the New York Times highlights a growing crisis in the U.S. real estate market, noting that millions of Americans are refusing to sell empty homes. The primary deterrent is the fear of high capital gains taxes on sales, which has led to a "lock-in effect" for secondary properties. This trend is further constraining housing inventory, keeping prices elevated despite broader economic fluctuations and stagnant diplomatic conditions abroad affecting general consumer confidence.
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.