US EQUITY OPEN: Stocks hit and yields rally on hawkish central bank repricing while geopolitical tensions continue to boil

OPEN: Stocks have opened in the red on Friday as the US/Iran war and hawkish central bank repricing hit sentiment. The Nasdaq is underperforming with consumer discretionary, communication and tech lagging while energy stocks outperform as elevated oil prices support the sector. After some of the de-escalatory comments from Netanyahu on the Iran war yesterday, tensions have risen again on reports that Trump is mulling plans to occupy or blockade Kharg Island.  Meanwhile, central bank speak has leant hawkish with ECB's Nagel and Muller warning hikes may be needed in response to the energy shock. Bowman spoke, noting she pencilled in three rate cuts this year, while Waller leaned more hawkish than usual, warning the Fed cannot look through a large and persistent oil shock, but does not think there is a need to consider rate hikes. UST yields are bear flattening in response to hawkish central bank repricing, while gold continues to fall. There is little on the calendar ahead, but focus remains on geopolitical updates, while after hours, we are expecting rating agency updates on France and the EU.   

• FedEx (FDX): Topped earnings expectations and raised outlook
• Super Micro Computer (SMCI): US probe into workers regarding NVIDIA chips allegedly illegally diverted to China
• Nexstar Media Group (NXST) / Tegna (TGNA): DOJ clears the Nexstar acquisition of Tegna
• Planet Labs (PL): Earnings beat with strong outlook
• Unilever (UL) / McCormick & Company (MKC): Unilever in talks to separate its food business and combine it with McCormick in an all-stock deal
• Arm Holdings (ARM): Double upgraded at HSBC
• Chipotle Mexican Grill (CMG): Upgraded at Mizuho to 'Outperform' from 'Neutral'
• Figs (FIGS): Upgraded at Oppenheimer to 'Outperform' from 'Perform'