S&P 500 Slips as Oil Holds Above $100

The S&P 500 edged lower late on Monday as oil remained elevated above $100 amid renewed Middle East tensions. FedEx and UPS fell sharply after Amazon expanded its logistics offering, while GameStop dropped heavily as eBay rose on a takeover bid. The US dollar strengthened early Tuesday, with sterling easing to $1.353, while gold recovered slightly and oil held firm despite a modest pullback.

Equities

The FTSE 100 closed slightly lower on Friday, slipping 0.1% to 10,363.93 as trading thinned ahead of a UK bank holiday. The mid-cap FTSE 250 edged 0.3% higher, offering a modest contrast to the softer tone among blue chips.

AstraZeneca fell 3.1% by the close on Friday after a US advisory panel declined to back one of its key experimental breast cancer treatments, a setback for its longer-term growth plans. NatWest dropped 3.4% despite reporting a 12% rise in first-quarter profit, as weaker-than-expected non-interest income weighed on sentiment.

Energy majors Shell and BP both ended lower on Friday, tracking a decline in crude prices. Consumer-focused names provided some support, with Unilever closing 2.6% higher at a one-month peak, while Rolls-Royce added 1.5% after reaffirming its profit outlook. Pearson rose 3.1% following a 4% increase in underlying first-quarter sales, driven by demand for digital learning.

In the US, the S&P 500 fell 0.41% late on Monday to 7,200.75, retreating from recent record highs amid geopolitical tensions in the Middle East. The Nasdaq Composite slipped 0.19%, while the Dow Jones Industrial Average dropped 1.13%.

FedEx sank 9.1% by the close on Monday and UPS tumbled 10.5% after Amazon unveiled plans to expand its logistics services to external clients. Norwegian Cruise Line fell 8.6% after cutting its full-year forecast due to rising fuel costs.

GameStop dropped 10% on Monday following its $56 billion bid for eBay, whose shares rose around 5%. Palantir climbed 1.4% ahead of its earnings release after the closing bell, reflecting continued investor focus on AI-driven growth.

Forex & Commodities

The US dollar moved higher early today, supported by renewed tension in the Middle East. The euro weakened slightly to $1.168, while sterling traded lower at $1.353 against the dollar. The dollar index held firm at 98.52 after strengthening late on Monday.

The Japanese yen steadied at 157.3 per dollar in early Asian trading, remaining close to its strongest level in two months after sharp gains last week. Traders stayed cautious following suspected intervention by Japanese authorities, with reports suggesting significant spending to support the currency.

The Australian dollar edged down to $0.7154 after the Reserve Bank of Australia raised interest rates for a third consecutive meeting. Policymakers also lifted inflation forecasts while lowering expectations for growth and employment, signalling concern about the impact of higher energy prices.

In commodities, spot gold rose early on Tuesday to $4,543 per ounce, recovering from a five-week low reached late on Monday. Gains were limited as a stronger dollar and elevated oil prices continued to influence expectations for US interest rates, with markets now seeing reduced chances of rate cuts this year.

Oil prices eased slightly on Tuesday morning following a sharp rise in the previous session. Brent crude traded at $113.9 per barrel after climbing strongly on Monday, as efforts by the United States to reopen shipping routes in the Strait of Hormuz helped ease immediate supply concerns.

Military developments in the region remained central, with continued exchanges between the US and Iran keeping energy markets sensitive. Despite the modest pullback in oil prices, supply constraints persisted, with global inventories reported to be nearing multi-year lows.