Dow Futures decline, as oil remains above $110 a barrel with the deadline set by President Donald Trump for a deal to cease hostilities with Iran nearing. The president maintains a diplomatic avenue, yet intensifies his warning of potential strikes on bridges and power facilities throughout Iran if a resolution is not achieved by Tuesday evening. In the aftermath of the conflict, equities surge following the semiconductor consortium’s agreement with the technology behemoth Google, alongside the release of impressive preliminary results.

Dow futures experienced a slight decline on Tuesday, as investors adopted a cautious approach in anticipation of Trump’s deadline for Iran to reach a ceasefire agreement or confront significant bombardments on its infrastructure. By 03:15, the Dow futures contract had decreased by 104 points, or 0.2%, while other futures had fallen by 25 points, or 0.4%, and additional futures had dipped by 118 points, or 0.5%. All three of the primary indices on Wall Street concluded the previous session with gains, as market participants sought indications of advancement in discussions aimed at resolving the prolonged conflict that has persisted for over a month. While aspirations for tranquility in the Middle East took precedence in discussions among traders, the conflict’s ramifications on the U.S. economy continued to be a focal point. Data indicated that the U.S. services sector experienced growth at a pace that fell short of expectations in March, a timeframe that encompasses the majority of the conflict. Employment in the vital sector also declined, and prices paid, a measure of inflation, surged to their highest point since October 2022. Simultaneously, concerns persisted regarding the stability of the $1.8 trillion private credit market. Shares of the company, which has become emblematic of these concerns, fell to an all-time closing low after it announced plans to restrict redemptions from two funds in response to an increase in withdrawal requests.

Oil prices have remained at high levels, as shipping traffic continues to flow only sparingly through the Strait of Hormuz. Brent crude futures, the global benchmark, were last observed at an increase of 1.5% at $11.45 a barrel, whereas U.S. West Texas Intermediate crude futures had risen by 2.4% to $115.14 a barrel. The strait, an essential conduit adjacent to Iran’s southern coastline, through which approximately one-fifth of global oil traverses, has effectively been rendered inaccessible to tankers for several weeks, heightening concerns regarding the continuity of global crude supply chains. Asian nations are significant importers of energy products that transit through the strait, while European countries similarly rely on natural gas imports from the Persian Gulf. During a conference on Monday, Trump emphasized that any ceasefire agreement should incorporate a guarantee from Iran to reopen the strait. If Tehran fails to comply by Trump’s deadline of 8 p.m. on Tuesday, the president has pledged to target bridges and power plants in Iran with such intensity that it would require the nation “100 years to rebuild.” However, in his characteristic unpredictable manner, Trump maintained the potential for a diplomatic resolution, asserting that Iran would “like to make a deal.”

Broadcom’s shares experienced a notable increase in after-hours trading following the company’s establishment of a long-term agreement with Google aimed at the development and support of custom processors optimized for next-generation artificial intelligence. Broadcom announced its commitment to provide networking and additional components for Google’s AI racks until 2031. The group has also reached an agreement to provide AI startup Anthropic with access to approximately 3.5 gigawatts of computing capacity sourced from Google’s AI processors, starting next year. In a note to clients, analysts indicated that the agreements suggest “upside risk to Broadcom’s” previous guidance for AI revenue exceeding $100 billion by 2027.

On Tuesday, Samsung Electronics forecasted a significant increase in first-quarter profit, attributing this growth to the robust demand for AI chips that has catalyzed a strong rebound in its semiconductor sector. The company stated it anticipates an operating profit of approximately 57.2 trillion won for the January–March period, representing an increase of over eight times compared to 6.69 trillion won in the same period last year. Revenue is projected to be approximately 133 trillion won, in contrast to 79.14 trillion won during the corresponding period last year. The optimistic perspective highlights a significant recovery in the memory chip sector, driven by increasing demand for high-bandwidth memory and other semiconductors associated with artificial intelligence, propelled by the swift expansion of generative AI applications.

In other developments, shares of Universal Music Group listed in Amsterdam experienced a significant increase of over 14% following the announcement by Bill Ackman’s Pershing Square Capital of an offer to acquire the company in a cash-and-stock transaction valued at more than 55 billion euros. Pershing Square announced that the agreement would result in a merger between Universal and Pershing Square Sparc Holdings, leading to the formation of a new entity headquartered in Nevada, with plans to relocate the stock listing to the New York Stock Exchange. The label commenced its trading activities in Amsterdam in 2021 after a spin-off from a conglomerate. Ackman stated that Universal’s stock price has “languished due to a combination of issues that are unrelated” to the performance of the business and can be “addressed with this transaction.” Shares of European media companies such as Vivendi experienced an uptick following the announcement of Pershing Square’s bid.