Wed 6 May: After the Bell
Markets Rally on Earnings and Easing Middle East Tensions
📈 Today’s performance tables.
Good evening,
Risk assets pushed to fresh record highs on Wednesday as investors leaned into strong corporate earnings and easing geopolitical fears. Oil prices fell sharply (-7%) on renewed hopes of a US-Iran diplomatic breakthrough that could reopen the Strait of Hormuz, after reports that both sides are working on a framework to restart talks next week. Despite oil’s pullback, American drivers saw no relief: average gasoline prices rose to $4.54/gallon, up from under $3 before the war began.
Equities extended their rally, with the S&P 500 Index and Nasdaq Composite closing at new highs as AI enthusiasm remained the market’s dominant theme, led by another strong gain in Intel (+4%) and a sharp post-earnings rally in AMD (+19%). Meanwhile, bond yields drifted lower despite hawkish comments from the Chicago Fed’s Goolsbee, as markets remained focused on earnings momentum and improving sentiment around the Middle East.
Earnings: → Sentiment remained strong today, with Uber, Disney, AppLovin and CVS Health all rallying 7 to 8% after mostly delivering beats on earnings & revenue and, more importantly, solid forward guidance. The common theme: investors rewarded companies showing resilient consumer demand, improving margins, and stronger-than-feared outlooks, reinforcing the view that corporate fundamentals remain healthy despite macro and geopolitical volatility.
Economics: → US private employers added 109,000 jobs in the latest ADP National Employment Report, the strongest reading since January 2025, suggesting the labour market remains resilient despite signs of broader economic cooling.
Deals: → In the music sector, Sony Music Group is in advanced talks to acquire Recognition Music Group from Blackstone for $3.5–4bn, in what would be one of the largest music catalogue deals ever. The portfolio includes rights tied to artists such as Justin Bieber and Neil Young, and while rival bidders reportedly emerged, no final agreement has been announced yet.
→ German pharmaceutical-and-agricultural group Bayer agreed to acquire privately held Perfuse Therapeutics, a California-based eye-drug specialist that is developing a potential glaucoma treatment, in the company’s biggest deal in years, worth up to $2.45bn.
→ In credit markets, pharma giant Eli Lilly is reportedly raising $9bn through a multi-tranche bond sale, with proceeds expected to help fund its recent deal spree and manufacturing expansion. Lilly has already spent aggressively on acquisitions this year, including deals for Centessa Pharmaceuticals and Kelonia Therapeutics, while also committing billions to expand obesity-drug manufacturing capacity for blockbuster treatments like Zepbound and Mounjaro.
Day Ahead:
Central Banks → Mexico rate decision. Data → €-zone retail sales, US jobless claims, Germany factory orders, Mexico inflation. Earnings → McDonald’s, Shell, Gilead S, Airbnb, Monster B.
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