OPENING CALL

Stocks were mostly on course to open a touch lower on Monday, with investors seemingly reluctant to make any major moves ahead of a slew of Big Tech earnings and a Federal Reserve interest-rate decision.

Megacap earnings will decide if the recent rally lasts, and the Fed is also set to announce its latest policy decision, with Jerome Powell likely to host his final press conference as chair.

Sen. Thom Tillis said Sunday he would support Kevin Warsh's confirmation as Fed Chair, clearing the last significant obstacle to installing the president's pick to succeed Powell.

Traders are all-but-certain that policymakers will keep interest rates unchanged, but Powell's comments could give the market a better sense of where borrowing costs are headed.

Oil rose and Goldman Sachs raised its year-end oil price forecast, after Trump canceled a planned trip by envoys to engage in peace talks with Iran.

Meanwhile, it seems that competition with China around AI is only intensifying ahead of next month's summit between Trump and his Chinese counterpart, President Xi Jinping.

Chinese regulators blocked Meta's over $2 billion acquisition for AI startup Manus, underlining heightened scrutiny of high-tech companies getting U.S. investment.

The White House on Thursday accused China of running industrial-scale distillation campaigns to steal American AI technology.

Anthropic, OpenAI and others have alleged Chinese AI companies use proxy accounts to generate millions of queries and use the responses to help train their own models.

Lombard Odier no longer prefers Chinese tech companies over their U.S. peers, as their relative growth and valuation appeal has narrowed.

Stocks to Watch

Frontier Group: A group of budget airlines pitched the Trump administration on a $2.5 billion relief plan , The Wall Street Journal reported Sunday. Frontier rose premarket.

Nvidia was rising early on Monday as the chip maker looks to consolidate record highs ahead of its earnings this week.

Organon was surging premarket after Indian drugmaker Sun Pharmaceutical Industries said it had agreed to buy the women's health company.

Watch For:

Earnings from Verizon Communications, Cadence Design Systems.

Today's Top Headlines/Must Reads:

-The Simple Security Flaws That Exposed Trump to Another Gunman

- The AI Splurge Is Costing Big Tech Its Workforce

-How Larry Ellison's Wealth Differs From Other Tech Billionaires

MARKET WRAPS

Forex:

The dollar turned lower after a media report that Iran sent the U.S. a new proposal to end the war, ING said.

However, falls should stay limited as oil prices remained elevated and investors question how central banks will react to higher inflation combined with weak growth, it added.

Trump told Fox News Sunday that he isn't sending U.S. envoys to Pakistan for talks with Iran, saying "if they want to talk, they can come to us or they can call us."

Trump also said Iran has about three days before its oil pipelines risk explosion from being clogged up.

Deutsche Bank said traders still appeared to price in a meaningful chance that the conflict would be resolved relatively soon.

Expectations for the BOE and ECB to raise interest rates appeared overdone ahead of meetings later in the week, leaving sterling and the euro vulnerable,

Commerzbank said.

"We are particularly skeptical of market expectations for the ECB and BOE," adding that there was ample scope for a reassessment of these expectations and thus plenty of room for sizeable moves in exchange rates.

MUFG said expectations that the BOE would raise interest rates this year were limiting the impact of U.K. political risks for sterling.

Bonds:

Treasury yields rose, with little progress toward a resolution in the Middle East keeping oil prices higher.

Along with the Middle East developments, this week's busy schedule of central bank meetings, including that of the Fed, were in focus.

"The Fed is widely expected to keep the target range for the funds rate at 3.50%-3.75% for a third straight meeting," Brown Brothers Harriman said.

Energy:

Oil prices rose more than 2%.

"The lack of progress means the market is tightening every day, requiring oil prices to reprice at higher levels," ING said.

"There's little alternative to fill a roughly 13-million-barrel-a-day shortfall."

Earlier on Monday, Axios reported that Iran offered the U.S. a new proposal to reopen the strait and end the war, with nuclear negotiations postponed for a later stage.

Philip Nova said the lack of progress on peace talks has reinforced fears that supply disruptions in the Middle East might last longer than expected.

"The failure of diplomatic progress has kept markets anchored to geopolitical headlines rather than traditional supply-demand fundamentals."

Downside risks to global growth projections could intensify if oil continues rising toward $110-$120 a barrel,

particularly for oil-import dependent Asian economies, it added.

Metals:

Gold futures slipped.

"The continued blockage of a key route for roughly one-fifth of global oil flows has sustained the energy shock, reinforcing expectations that central banks may keep interest rates higher for longer, a major headwind for non-yielding bullion," MUFG said, adding that investors were also watching potential leadership changes at the Fed for clues on future monetary policy.

   TODAY'S TOP HEADLINES 

Taiwan Court Hands Down Prison Sentences Over Leaks of TSMC Trade Secrets

A Taiwanese court on Monday sentenced a former Taiwan Semiconductor Manufacturing employee to 10 years in prison over the theft of trade secrets.

The case marks the first time Taiwan has used security legislation to prosecute the stealing of intellectual property involving critical chip technology.

Forvia Sells Auto Interiors Business to Apollo Funds in $2.1 Billion Deal

French auto parts supplier Forvia has agreed to sell its automotive interiors business to Apollo Global Management in a deal that values the unit at around $2.1 billion, including debt.

The company's interiors business supplies products including instrument panels, door panels and center consoles to auto manufacturers through its global network of manufacturing and engineering sites across Europe, North America and Asia.

Galp's Key Earnings Metric Boosted by Higher Production, Prices

Galp Energia reported a first-quarter jump in a key earnings metric on higher oil-and-gas production and a surge in energy prices.

The Portuguese oil-and-gas producer said Monday that quarterly adjusted replacement-cost net profit-a metric similar to net profit that U.S. oil-and-gas companies report-rose 41% on the same period last year to 272 million euros ($318.8 million). This compares with the 277 million euros expected by analysts, according to a company-provided consensus.

Elon Musk Is an Underdog in His $180 Billion Fight Against OpenAI

As Elon Musk's trial against OpenAI begins this week, legal experts and prediction markets agree that he will enter the Oakland federal courthouse as an underdog.

Since March, Kalshi has put his chances of victory at about 40% on average, down significantly from the 57% Musk touted in January when he posted on X, "Can't wait to start the trial."

ECB and BOE to Leave Key Rates Unchanged as Fate of Hormuz Strait Remains Unclear

The European Central Bank and the Bank of England are set to leave their key interest rates unchanged Thursday as they await clarity on the duration and scale of the energy shock that has accompanied the conflict in the Middle East.

At their last meetings in March, Europe's leading central banks made it clear that they were prepared to increase borrowing costs in response to the surge in energy prices.

German Consumer Sentiment Slumps to Three-Year Low on Iran War Impact

Consumer confidence in Germany plunged to its lowest level since February 2023 as the conflict in the Middle East dimmed income expectations and hopes for a tentative economic rebound this year amid surging energy prices.

Germany's consumer-climate index, published Monday by research group the Nuremberg Institute for Market Decisions and GfK, fell to minus 33.3 in its forecast for May, from minus 28.1 for April. The 5.2-point decline is the sharpest since October 2022, as Germany's economy reeled from the last energy shock in the months after Russia's full-scale invasion of Ukraine.

Caltech Grad, 'Teacher of the Month' Named as Washington Shooting Suspect

LOS ANGELES-The 31-year-old Caltech grad, who authorities say opened fire outside the White House Correspondents' Association Dinner on Saturday, called himself the "Friendly Federal Assassin" and said he was targeting Trump administration officials, according to the writings of the suspected gunman.

Cole Allen, from Torrance, Calif., wrote in a screed authorities have tied to him that he could no longer stand idly by in the face of the administration's actions, according to a copy viewed by The Wall Street Journal.

How to Avoid Fistfights and DNA Leaks at a World Leaders Summit

Xi Jinping had just finished a lunch of herbed-ricotta ravioli at a secluded estate outside San Francisco in 2023 when his security agents sprang into action.

Their mission: ensuring no trace of the Chinese leader's DNA fell into foreign hands. The agents-measuring about 6-foot-3, dressed in identical dark suits-were observed grabbing Xi's utensils and plate and spraying them with an unidentified liquid.

King Charles Is on a Mission to Salvage U.K. Relations With Trump

WASHINGTON-King Charles III arrives in Washington on Monday to publicly celebrate 250 years since a nascent U.S. republic ousted his forebears, and privately ensure that a fraying trans-Atlantic relationship can cope with another two-plus years of President Trump.

The four day visit-billed as Charles's most high-wire diplomatic act since coming to the throne-will include a speech to Congress, the first time a British monarch has spoken there since 1991, a private audience with Trump and state dinner in Washington, as well as trips to New York and Virginia.

Colombia Hit by Deadliest Wave of Bombings for Civilians in Years

BOGOTA, Colombia-Bombings allegedly perpetrated by a drug-trafficking group in southern Colombia killed at least 20 people, authorities here said Sunday, marking the deadliest wave of attacks on civilians in years and heightening security concerns a month before the South American country's presidential elections.

Military and state security officials said they registered some 26 attacks in rural communities over the weekend, including the bombing of a bus on a highway Saturday that killed passengers and left dozens injured. Videos posted on social media by Octavio Guzmán, governor of the Cauca department where much of the violence occurred, showed vehicles overturned and left mangled by the blast.

California's Billionaire Tax Has the Signatures to Make the Ballot, Backers Say

Backers of the proposed California billionaire tax believe they have gathered enough signatures to get the initiative on the November ballot, according to people familiar with the campaign, likely kicking off a bruising battle over the initiative.

More than 1.5 million people have signed a petition to get the one-time, 5% wealth tax on statewide ballots in November, the people said. County election officials must tally the signatures, verify them, and send them to California's secretary of state before the measure can appear on the ballot. The people familiar with the campaign said they expect that will be more than enough to clear the required 875,000-signature threshold, even after accounting for illegible or invalid signatures.

Write to clare.kinloch@wsj.com

TODAY IN CANADA

Earnings:

Celestica Inc.

TFI International

Economic Indicators $(ET)$:

Nothing major scheduled

Stocks to Watch:

Orezone Gold Price Target Raised 2.4% to A$4.35/Share by Euroz Hartleys

Wall Financial 4Q EPS C$0.10

Expected Major Events for Monday

05:00/JPN: Feb Indexes of Business Conditions - Revision

06:00/GER: May GfK consumer climate survey

10:00/UK: Apr CBI Distributive Trades Survey

14:30/US: Apr Texas Manufacturing Outlook Survey

23:01/UK: Apr Shop Price Monitor

23:30/JPN: Mar Labour Force Survey

23:50/JPN: Apr Provisional Trade Statistics for 1st 10 days of Month

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Expected Earnings for Monday

ASA Gold & Precious Metals Ltd $(ASA)$ is expected to report for 1Q.

Alexandria Real Estate Equities Inc $(ARE)$ is expected to report $0.16 for 1Q.

Alliance Resource Partners LP (ARLP) is expected to report $0.39 for 1Q.

Bank of Marin Bancorp $(BMRC)$ is expected to report $0.55 for 1Q.

Brixmor Property Group Inc (BRX) is expected to report $0.25 for 1Q.

Brown & Brown Inc $(BRO)$ is expected to report $1.07 for 1Q.

Business First Bancshares Inc (BFST) is expected to report for 1Q.

CASI Pharmaceuticals Inc (CASIF) is expected to report for 4Q.

COPT Defense Properties $(CDP)$ is expected to report $0.33 for 1Q.

Cadence Design Systems Inc $(CDNS)$ is expected to report $1.16 for 1Q.

Celestica Inc (CLS,CLS.T) is expected to report for 1Q.

Cincinnati Financial Corp $(CINF)$ is expected to report $1.88 for 1Q.

Citizens Community Bancorp Inc (CZWI) is expected to report $0.36 for 1Q.

Crane Co $(CR)$ is expected to report $1.40 for 1Q.

Domino's Pizza Inc $(DPZ)$ is expected to report $4.28 for 1Q.

Easterly Government Properties Inc (DEA) is expected to report for 1Q.

F&M Bank Corp (FMBM) is expected to report for 1Q.

First Bank (Williamstown NJ) (FRBA) is expected to report $0.46 for 1Q.

First Community Bankshares Inc $(FCBC)$ is expected to report $0.52 for 1Q.

Fulcrum Therapeutics Inc (FULC) is expected to report $-0.32 for 1Q.

Greenwich LifeSciences Inc $(GLSI)$ is expected to report for 4Q.

HBT Financial Inc $(HBT)$ is expected to report $0.60 for 1Q.

Lakeland Financial Corp $(LKFN)$ is expected to report $1.01 for 1Q.

NOV Inc $(NOV)$ is expected to report $0.14 for 1Q.

Northern Dynasty Minerals Ltd (NAK,NDM.T) is expected to report for 4Q.

Northwest Bancshares Inc (NWBI) is expected to report $0.30 for 1Q.

Norwood Financial Corp (NWFL) is expected to report $0.47 for 1Q.

Nucor Corp $(NUE)$ is expected to report $2.81 for 1Q.

Potomac Bancshares Inc (PTBS) is expected to report for 1Q.

Royale Energy Inc (ROYL) is expected to report for 4Q.

Sierra Bancorp $(BSRR)$ is expected to report $0.82 for 1Q.

Simpson Manufacturing Co (SSD) is expected to report $1.87 for 1Q.

Solaris Energy Infrastructure Inc $(SEI)$ is expected to report $0.33 for 1Q.

TFI International Inc (TFII,TFII.T) is expected to report $0.46 for 1Q.

Timberland Bancorp Inc (TSBK) is expected to report for 2Q.

Universal Health Services Inc - Class B (UHS) is expected to report $5.31 for 1Q.

Utah Medical Products Inc $(UTMD)$ is expected to report for 1Q.

Verizon Communications Inc $(VZ)$ is expected to report $1.19 for 1Q.

Western Energy Services Corp (WRG.T) is expected to report for 1Q.

Winchester Equity Corp (WEC.V) is expected to report for Full year.

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ANALYST RATINGS ACTIONS

Advanced Micro Devices Raised to Buy From Neutral by DA Davidson

Bloomin' Brands Cut to Underweight From Neutral by JP Morgan

DraftKings Cut to Neutral From Buy by MoffettNathanson

Freeport-McMoRan Cut to Equal-Weight From Overweight by Morgan Stanley

Insulet Cut to Neutral From Buy by Rothschild & Co

Intel Raised to Buy From Neutral by Citigroup

Iridium Communications Cut to Market Perform From Outperform by Raymond James

MaxLinear Raised to Buy From Hold by Needham

Phillips 66 Raised to Overweight From Equal-Weight by Morgan Stanley

Pinterest Cut to Mixed From Positive by BWG Global

Southwest Airlines Raised to Hold From Reduce by HSBC

TruBridge Cut to Hold From Buy by Freedom Capital Markets

TruBridge Cut to Neutral From Overweight by Cantor Fitzgerald

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 27, 2026 06:01 ET (10:01 GMT)

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