US EQUITY OPEN: Stocks sold into weekend on geopolitical risk, despite Trump's optimism
US EQUITY OPEN: Stocks have opened in the red on Friday as geopolitical risks remain high into the weekend, despite Trump's olive branch of extending the pause on damaging energy facilities in Iran to April 6th. Trump said this was at the request of Iran, but Iran denies this, while it also struck more US bases overnight. Downside is broad-based with Consumer Discretionary, Financials and Communications lagging, while Energy stocks continue to outperform with energy prices buoyed. Staples and Utilities are also green as participants look for safe havens. Cyber security names are lower on reports that Anthropic accidentally leaked details of a new AI model that poses unprecedented cyber security risks. In FX, it is less volatile with the Euro outperforming alongside the Dollar while the GBP lags, but only -0.2% vs the buck. The Treasury curve is steepening despite the gains in oil prices, while gold is bid, silver is flat, and Bitcoin is falling.
STOCK SPECIFICS
- AstraZeneca (AZN): Tozorakimab met the primary endpoint in both OBERON and TITANIA Phase III trials
- First Trust Nasdaq Cybersecurity ETF (CIBR): Reports emerge of a leaked Anthropic AI model, “Claude Mythos”; the company believes it poses unprecedented cybersecurity risks
- Unity Software (U): Raised Q1 revenue view; price target raised at BofA
- Argan (AGX): Earnings beat; upgraded at JPMorgan to 'Overweight' from 'Neutral'
- TripAdvisor (TRIP): Upgraded at BofA to 'Buy' from 'Neutral'
Stocks are opening lower as escalating geopolitical tensions, particularly between the U.S. and Iran, overshadow President Trump's optimistic comments on energy facilities. This risk-off sentiment is driving investors toward defensive plays, while sector performance varies, with energy stocks defying the broader downturn. Market participants should watch for further developments in this geopolitical landscape as it will likely influence sentiment and asset allocation through the weekend.