Highlights from today’s pre-mkt summary for Subscribers: Stocks paused in Friday pre-market trading as President Trump pressed Iran to reopen the Strait of Hormuz ahead of weekend U.S.-Iran negotiations in Pakistan aimed at converting a fragile ceasefire into lasting peace. Brent crude rose 1.5% to $97/barrel. TSM gained 1.8% after reporting a 35% YoY jump in Q1 revenue, beating estimates and signaling resilient global AI chip demand despite the Middle East conflict. March CPI data is due this morning, with investors shifting focus next week to 1Q earnings season starting with financials.
The S&P 500 is on track for its strongest weekly gain in nearly a year. We expect equities to reclaim new highs once the conflict is resolved, as oil prices ease, and slowing employment growth accelerates the pace of Fed rate cuts later this year. S&P 500 2026 EPS estimates have climbed to $324 (+17% YoY), implying a forward P/E of 21.1x, a 4.7% earnings yield and a +40bp premium vs 10yr treasury yields, in line with historic premiums in no -recessionary periods. We remain cautious on TSLA due to declining long-term earnings estimates, rising competition in unsupervised autonomy, and an extended valuation (2026 P/E 180x vs +35% long-term forward growth).The copyright of this article belongs to the original author/organization.
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