Intel Earnings Boost Nasdaq as Hormuz Tensions Weigh on Markets

TLDR

• Intel shares hit record highs after a strong Q1 earnings beat and positive outlook
• The Nasdaq rose 0.7%, the S&P 500 gained 0.3%, while the Dow slipped 0.3%
• The PHLX Semiconductor Index rose for an 18th straight session, its longest streak on record
• Oil prices eased slightly as traders hoped US-Iran peace talks could resume
• Bitcoin fell as Middle East uncertainty kept investors cautious

Intel reported a first quarter profit beat and gave a strong outlook, sending its shares to record highs on Friday. The result helped lift the broader tech sector and pushed the Nasdaq higher.

The Nasdaq rose 0.7% on the day. The S&P 500 added 0.3%. The Dow Jones Industrial Average fell around 0.3%, dragged down partly by its lack of exposure to major chip stocks.

The Dow replaced Intel with Nvidia in 2024, leaving it without a direct benefit from Intel’s surge. Other large chipmakers also helped pull the index lower.

Texas Instruments also had a strong week. Its stock rose by the most in 25 years on Thursday after posting a big earnings beat, adding to the positive tone across the chip sector.

The PHLX Semiconductor Index rose for an 18th consecutive session. According to Dow Jones Market Data, this is the longest winning streak in the index’s recorded history.

AI Trade Lifts Legacy Chipmakers

Analysts say the strong results from Intel and Texas Instruments suggest the AI data center build-out is benefiting older, established chipmakers and not just newer players.

Both companies are seen as suppliers to large data center projects. Their earnings results are being read as a sign that demand across the chip supply chain remains strong.

Strong tech earnings gave investors a reason to look past ongoing geopolitical tensions in the Middle East. The Strait of Hormuz remains blocked, keeping oil markets on edge.

Brent crude futures dipped below $100 a barrel. West Texas Intermediate slipped to around $95 a barrel. Traders are watching whether US-Iran peace talks can move forward.

President Trump announced a three-week extension to the Israel-Lebanon ceasefire. Markets are debating whether this could help advance broader diplomatic efforts with Iran.

Oil and Bitcoin Feel the Pressure

Trump’s social media posts have been seen as complicating diplomatic efforts, even as the ceasefire holds. The Strait of Hormuz standoff continues to affect energy supply concerns.

Natural gas prices were heading for a 16% weekly gain tied to Hormuz tensions. Energy stocks rose earlier in the week as the waterway remained closed.

Bitcoin fell on Friday. Middle East uncertainty kept some investors cautious and away from risk assets including crypto.

Treasury yields edged lower as geopolitical tensions continued to loom. The dollar remained stable despite the ongoing standoff.

Earnings from Procter & Gamble, HCA Healthcare, and Norfolk Southern are also due Friday. Investors are also watching the final April reading of the University of Michigan consumer sentiment index.

The Nasdaq needs to close above 24,657 to set a new weekly closing high. The S&P 500 needs to top 7,137 to do the same.

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