The S&P 500 (^GSPC) heads into Tuesday with momentum after a powerful rebound last month in which the broader markets advanced 9%. A pullback in crude oil and first-quarter earnings beats are driving today’s gains as the markets embrace a reprieve in the Mideast escalation. The S&P 500 (^GSPC) is capturing those tailwinds for gains at the open. WTI crude futures dipped 2% to above $103 per barrel, while Brent slipped 1% to above $112.
The Pentagon signaled restraint, with Defense Secretary Pete Hegseth and Gen. Dan Caine confirming the fragile cease-fire remains intact. Officials stopped short of escalation language, characterizing Tehran’s provocations as falling outside the threshold that would reignite open conflict. The CBOE Volatility Index sits at almost 17, down from a March peak around 31, and the 10-year Treasury yield held near 4.4%. All eyes are also on the 30-year Treasury yield, which surpassed the 5% threshold yesterday on geopolitical uncertainty.
Earnings beats broaden the rally
Pfizer (NYSE:PFE | PFE Price Prediction) gained around 2% premarket after adjusted EPS of $0.66 topped the $0.57 estimate and revenue topped estimates; CEO Albert Bourla said “2026 will be an important year rich in key catalysts.” Anheuser-Busch InBev (NYSE:BUD) jumped 6% on Q1 EPS of $0.97 versus $0.91 expected, with revenue of $15.27 billion up 12% year over year and organic growth of almost 6%.
Pinterest (NYSE:PINS) rallied 16% on double-digit sales growth and bullish second-quarter guidance. Ferrari (NYSE:RACE) posted Q1 revenue of 1.85 billion euros and an industry-leading EBITDA margin of 39%, confirming its 2026 outlook even as President Trump renewed tariff threats on the European Union.
Advanced Micro Devices (NASDAQ:AMD) headlines the after-close earnings slate.
Palantir (NASDAQ:PLTR) posted Q1 revenue of $1.63 billion against a $1.53 billion consensus, with adjusted EPS of $0.33 beating the $0.28 estimate. The company lifted full-year guidance to $7.65-$7.66 billion.
Ferrari (NYSE:RACE) beat on both lines and reaffirmed 2026 guidance, posting an industry-leading EBITDA margin of 39%.
PayPal (Nasdaq: PYPL) stock is sinking 9% in pre-market trading despite beating Wall Street’s earnings estimates. The stock is being punished on a lackluster outlook.
Corporate Catalysts
Two more catalysts fuel the bid. Intel (NASDAQ:INTC) rose as much as 4% in premarket on reports Apple is exploring Intel and Samsung as secondary US chip suppliers, extending a year-to-date gain of 160%.
Coinbase (NASDAQ:COIN) added nearly 4% premarket after announcing a 14% headcount cut tied to AI-driven efficiency.
Market Internals Confirm the Rally
The VIX sits at 16.99, well within the normal 15-20 band and down 31% from a month ago. Small caps lead: the Russell 2000 proxy is up almost 13% year to date, ahead of the S&P 500’s 5% and the Nasdaq 100’s almost 10%. That breadth signals participation beyond mega-cap tech, the missing ingredient through much of last year. As Truist Wealth’s Keith Lerner put it, this remains a “teflon market” driven by “profits, profits, and profits.”
What to Watch Next
AMD’s report tonight will set the tone for AI hardware demand and shape sentiment around the chip complex. On the macro side, watch crude’s reaction to OPEC commentary or Middle East shipping headlines, and monitor guidance language from energy reporters this week for hints on supply discipline.
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