Morning on the Markets: May 1
Overview of key events by the morning of May 1. The July contract for Brent rose by 0.6% to $111 per barrel. Apple and Reddit reported better than expected results and provided strong forecasts, while Tesla disclosed over $570 million in revenue from deals with other companies of Elon Musk.
Overview of key events by the morning of May 1
The July contract for Brent rose by 0.6% to $111 per barrel. Apple and Reddit reported better than expected results and provided strong forecasts, while Tesla disclosed over $570 million in revenue from deals with other companies of Elon Musk.
Oil rises amid risks of US-Iran ceasefire breakdown
July futures for Brent oil rose by 0.6% and traded above $111 per barrel. The June contract, before expiring on Thursday, surged to $126 per barrel but retreated to $114 by the close of trading. The market is supported by ongoing geopolitical risks and uncertainty surrounding the US-Iran conflict.
The Trump administration is attempting to bypass the requirement for sanctioning military operations, stating that the ceasefire with Iran has effectively ended hostilities and resets the 60-day deadline. At the same time, Trump maintains pressure on Tehran, which threatens strikes in the event of a new attack, while the situation around the Strait of Hormuz and negotiations on the nuclear deal remains a key factor for the market.
Apple exceeds forecasts despite weak iPhone sales
Apple's profit and revenue for the second quarter of the 2026 fiscal year, which ended on March 28, were better than expected. Earnings were $2.01 per share against forecasts of $1.95, while revenue reached $111.2 billion compared to a consensus of $109.7 billion. The forecast for the next quarter also exceeded market expectations, with revenue growth expected to be 14–17%.
Revenue from iPhone sales amounted to $56.99 billion against expectations of $57.2 billion. Apple also announced a buyback of $100 billion and increased dividends to $0.27 per share.
Reddit sharply increased profits
Reddit reported significantly better than expected results. Revenue in the last quarter increased by 69% to $663 million, while net profit rose from $26 million a year earlier to $204 million. The forecast for the second quarter also exceeded Wall Street estimates, supporting a stock price increase of more than 12% in after-hours trading.
Strong results were driven by online advertising and data licensing deals, including partnerships with Google and OpenAI. The number of daily users reached 126.8 million.
Reddit CEO Steve Huffman stated: “There is no artificial intelligence without real intelligence. Knowledge has to come from somewhere, and Reddit is one of the key sources of such information that is needed by both AI and people.”
Tesla earned over $570 million from deals with Musk's companies
Tesla earned over $570 million from sales to other companies of Elon Musk last year: about $430 million came from xAI, and another $143 million from SpaceX. Musk's businesses are becoming increasingly interconnected: xAI purchases energy systems from Tesla, the automaker integrates the Grok chatbot into its cars, and the companies are discussing joint chip production. Just in the first months of 2026, Tesla received another $78 million from xAI.
Meta does not rule out further layoffs
Meta CEO Mark Zuckerberg explained the planned layoffs of 10% of employees due to rising costs associated with AI development: according to him, increased investments in computing infrastructure require cuts in personnel expenses. Zuckerberg did not rule out further layoffs in the second half of the year.
At the same time, dissatisfaction is growing within Meta: employees criticize management for the lack of transparency in decision-making and parallel initiatives, including the use of employee activity data to train AI.
Trump will lift tariffs on Scottish whiskey
President Trump announced that the US will lift tariffs and restrictions on Scottish whiskey, calling it a gesture in honor of the visit of King Charles III and Queen Camilla. The decision is also aimed at strengthening ties between producers in Scotland and the American state of Kentucky.
Trade restrictions have hit both sides — Scotch exports to the US fell by 15%, while American whiskey exports fell by 19%.
What’s happening in the markets
- The broad Japanese index Topix rose by 0.1%, while Nikkei 225 rose by 0.6%
- The Hong Kong, Shanghai, and Shenzhen stock exchanges are closed due to holidays
- The Korean stock exchange is also closed
- The Australian S&P/ASX 200 gained nearly 1%
- Futures on the S&P 500 and Dow Jones rose by 0.2%, while futures on the Nasdaq Composite rose by 0.1%