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S&P 500 drops from record high due to Middle East concerns
Wall Street closed lower on Monday as the S&P 500 fell from its record highs. This was after a South Korean vessel was struck by an explosion 'in the Strait of Hormuz, and Tehran showed 'its grip on Middle East Oil, dampening expectations of'strong - first-quarter earnings. After reports of the latest clashes, energy stocks rose. After U.S. president Donald Trump announced that the U.S. Navy was opening the strait, an explosion aboard a South Korean ship may have convinced commercial shippers it is still dangerous. Tehran claimed it had forced a U.S. ship to turn around after it tried to enter the strait. Meanwhile, the United Arab Emirates said that an Iranian drone had attacked an oil facility in the United Arab Emirates. The renewed nervousness about the Middle East conflict comes after the S&P 500 and Nasdaq hit record highs last Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 companies are expected to achieve earnings growth of 28 percent year/year in the first quarter. This is double what was anticipated at the beginning of April. Wall Street's AI heavyweights are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that the company was a net stock seller for the fourteenth consecutive quarter. Investors pay close attention to the conglomerate because it is often seen as a bellwether for the U.S. economic situation. GameStop shares fell 10%, while eBay's rose 5%. This was after GameStop announced a proposal for a cash and stock deal to purchase the online marketplace. GameStop has a stock market worth of about $11 billion. The S&P 500 declined by 0.41%, closing the session at 7,200.75. The Dow Jones Industrial Average fell 1.13%, or 25,941.90 points, to 48,941.90. The S&P 500 indexes fell in ten of 11 sectors. Materials, which dropped by 1.57%, was followed by industrials, who lost 1.17%. Energy index increased by 0.85%. FedEx, a delivery firm, dropped 9.1% and United Parcel Service, 10.5% after Amazon.com announced it would be rolling out "Amazon Supply Chain Services" to open up its logistics network to other businesses. FedEx and UPS declined, dragging the Dow Jones Transportation Index down to its lowest point in almost a month. Palantir rose 1.4% after the bell, ahead of its quarterly report on data analytics and defense software. Norwegian Cruise Lines fell 8.6% following a re-evaluation of its annual forecast because of higher fuel prices related to the Middle East conflict. The S&P 500 saw a ratio of 2.2:1 between declining stocks and rising stocks. The S&P 500 recorded 26 new highs, and?22 lows. The Nasdaq registered 126 highs, and 87 lows. The volume on the U.S. exchanges is relatively low, with 16,3 billion shares trading, compared to an average of 17,7 billion over the last 20 sessions.
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S&P 500 drops from record high due to Middle East concerns
Wall Street closed lower on Monday. The S&P 500 fell from record highs after an explosion hit a South Korean ship in the 'Strait of Hormuz. Tehran also demonstrated its control over Middle East oil. This dampened optimism for strong earnings reports for the first quarter. After reports of the latest clashes, energy stocks rose. The explosion aboard a South Korean ship may have convinced commercial shippers that the strait is still dangerous after U.S. president Donald Trump announced the U.S. Navy will open it. Tehran claimed it forced a U.S. ship to turn back when it tried to enter the strait. Meanwhile, the United Arab Emirates reported that an Iranian drone had attacked an oil facility in the United Arab Emirates. The renewed nervousness about the Middle East conflict comes after the S&P 500 and Nasdaq hit record highs last ?Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 is expected to grow its earnings by 28% in the first quarter compared to the 14% that was anticipated at the beginning of April. Wall Street's AI giants are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that they were a net seller for the 14th quarter in a row. Investors are closely watching the conglomerate which is often viewed as an indicator of the U.S. economic situation. They want to get a better understanding of market valuations and conditions. After the video game retailer announced a proposal to purchase?the online market for $56 billion, in cash and stock, shares of GameStop fell while eBay rose. GameStop has a stock market worth of about $11 billion. According to preliminary data, according to the S&P 500, it lost 28.37, or 0.39, points to finish at 7,201.75, and the Nasdaq Composite dropped 43.78, or 0.17, points to 25,070.67. The Dow Jones Industrial Average fell 549.79 or 1.12% to 48,946.86. FedEx and United Parcel Service dropped after Amazon.com?said that it would be rolling out "Amazon Supply Chain Services" to open up its logistics network to other businesses. Palantir has surpassed the data analytics and defence software company's quarterly report. The Dow Jones Transportation Average index fell to its lowest point in almost a month due to the declines of FedEx and UPS. Norwegian Cruise Lines dropped after cutting its annual forecast because of higher fuel prices related to the Middle East Conflict.
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S&P 500 drops from record high due to Middle East concerns
Wall Street fell?from its record highs Monday, after a South Korean vessel was struck by an explosion on the 'Strait of Hormuz' and Tehran exhibited its grip on Middle East Oil. This dampened optimism about a strong first-quarter earning report. The energy stocks increased after reports of the latest clashes. The explosion aboard a South Korean ship may have convinced commercial shippers that the Strait is still dangerous after U.S. president Donald Trump announced the U.S. Navy will open it. Tehran claimed it had forced a U.S. ship to turn around after it tried to enter the strait. The UAE also reported an oil installation fire following an Iranian drone strike. Uncertainty related to the Middle East conflict weighed on U.S. stocks after the S&P 500 hit ?a record high last Friday amid a stronger-than-expected quarterly earnings season. Ross Mayfield is an investment strategist with Baird Private Wealth Management. According to LSEG, the S&P 500 is expected to post aggregate earnings growth of 28 percent year/year in the first quarter. This is double what was anticipated at the beginning of April. Wall Street's AI giants are responsible for much of this optimism. Berkshire Hathaway announced on Saturday that the company was a net stock seller for the fourteenth consecutive quarter. Investors pay close attention to the conglomerate because it is often seen as a bellwether for the U.S. economic situation. It also provides valuable insight into market valuations. GameStop shares fell 8.5%, while eBay's rose 5.4%. This was after the video game retailer announced a proposal for a cash and stock deal to purchase the online marketplace. GameStop has a stock market worth of about $11 billion. The S&P500 was down by 0.33% to 7,206.53. The Nasdaq fell 0.12%, to 25,083.19, while the Dow Jones Industrial Average dropped 0.91%, to 49,050.99. Materials, which fell 1.37% and industrials, which lost 0.89%, were the two worst performing S&P 500 sector indexes. FedEx and United Parcel Service both fell by about 9% after Amazon.com announced that it would be rolling out "Amazon Supply Chain Services," which will open up its logistics network to other businesses. FedEx and UPS declined, dragging the Dow Jones Transportation Average down 4.3%. It was its lowest level for nearly a week. Norwegian Cruise Lines fell about 8% after reducing its annual forecast because of higher fuel costs due to the Middle East conflict. The S&P 500's declining stocks outnumbered the rising ones by a ratio of 2.1 to one. The S&P 500 recorded 26 new highs, and 22 new lowers. The Nasdaq registered 115 highs, and 70 lows.
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Airline cancellations in response to Middle East conflict
Middle Eastern carriers increased capacity following the disruption caused by the Iran War, while airlines outside of the Gulf have rerouted flights between Europe and Asia away from major hubs within the region. The latest flight information is listed below alphabetically: AEGEAN AIRLINES On May 21, Greece's biggest carrier will resume flights from Heraklion to Tel Aviv, as well as Rhodes and Larnaca. Thessaloniki-Tel Aviv flights are cancelled up until June 26. Flights will resume to Beirut, Riyadh, and Amman on May 12. Flights from Dubai to Erbil and Baghdad will be cancelled until July 2, while flights to Dubai until June 29 are still in effect. AIRBALTIC Latvian airline airBaltic has announced that flights to Tel Aviv are cancelled until 28 June. Dubai flights are cancelled until 24 October. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. Air France-KLM Air France suspended flights to Riyadh, Riyadh and Dubai until the 20th of May. KLM suspends flights to Riyadh, Dammam and Dubai until the 22nd of June. CATHAY PACIFIC Hong Kong Airlines has suspended its flights to Dubai, Riyadh and cargo services to Dubai, Riyadh and Dubai until June 30, and May 31, respectively. The airline plans to continue operating?all scheduled flight beyond June. The U.S. carrier plans to resume New York JFK-Tel Aviv service on September 6 and has extended the suspension of Atlanta-Tel Aviv services through November 30, 2018. The launch of the Boston-Tel Aviv route that was scheduled for late October has been postponed until further notice. EL AL ISRAEL AIRLINES From April 27, the Israeli carrier will be operating flights to around 40 active gateways. Until May 31, all flights to Dubai have been cancelled. Emirates Airlines, the UAE's national airline, has announced that it now operates to 137 destinations. ETIHAD Airways The United Arab Emirates carrier announced that it operates a commercial flight schedule from Abu Dhabi to around 80 destinations. FINNAIR The Finnish airline has cancelled all Doha flights up until July 2. It continues to avoid the airspace of Iraq, Iran Syria and Israel. The airline will not resume Dubai flights until October. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. Jeddah is no longer a destination and it will be permanently removed. From July, it plans to reduce the number of flights to Dubai, Doha, and Tel Aviv from two daily flights to just one. Riyadh will be reduced from two daily flights down to just one starting in mid-May. The changes will apply until the end of the summer season on October 24. One Dubai service will restart on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until May 31, and Doha-Tokyo until June 1. LOT, the Polish airline, has suspended its flights to Tel Aviv up until May 31. The airline also cancelled flights from March 31 through May 30 to Beirut and Riyadh. LOT will operate its winter route from Dubai to Riyadh in October. LUFTHANSA GROUP Lufthansa has suspended flights from Tel Aviv to Dubai until July 11 and Swiss, Austrian Airlines Brussels Airlines, and Edelweiss until May 31. Amman, Beirut Dammam Riyadh Erbil Muscat and Tehran flights are suspended until 24 October. Eurowings, a low-cost airline, has suspended flights from Tel Aviv to June 22, Beirut to June 12, Erbil to June 22, Dubai to Abu Dhabi and Amman to October 24. ITA Airways has extended the suspension of flights from Tel?Aviv to Riyadh, Dubai and Riyadh until May 31. MALAYSIA Airlines will resume limited service to Doha on June 2. NORWEGIAN AIR Low-cost airline, AirAsia, has delayed the launch of its Tel Aviv and Beirut services until June 15, 2019. PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq, Amman Beirut Kuwait, Bahrain Doha Dammam Riyadh Dubai Abu Dhabi Sharjah and Abu Dhabi until June 1. QANTAS, Australia's flag-carrier, is increasing flights to Rome and Paris in response to a surge in demand for European destinations. The number of flights to Paris is increasing to five return flight?per week, up from three. Perth-Singapore will also increase from daily service to ten a week. A new schedule will be implemented gradually for flights starting in mid-April. It will run until late July. QATAR AIRWAYS It said that it would resume passenger flights from Baghdad to Basra, Erbil and Baghdad airports in Iraq on May 10. The airline said that it will expand its international flight network from June 16 to more than 150 destinations. ROYAL MAROC The Moroccan airline said that flights to Doha and Dubai were cancelled until the end of June. SINGAPORE Airlines In response to increased demand, the carrier has extended its Singapore-Dubai suspension until May 31 and added services on the Singapore-London Gatwick route from late March until 24 October. SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to June 7. WIZZ AIR Low-cost carrier suspends flights from Europe to Dubai, Abu Dhabi, and Amman until mid-September. All flights to Medina are suspended indefinitely. (Compiled by Josephine Mason and Jamie Freed. Elviira Lioma, Tiago Branao, Agnieszka Oenska, Bernadette HOG, BoleslawLASOCKI, Romolo TOSIANI. Rod Nickel, Lisa Shumaker Jonathan Ananda Matt Scuffham, Alexander Smith and Rod Nickel edited the book.
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US and Gulf Arab nations draft a new UN resolution on Strait of Hormuz
The United States is drafting with?Gulf Arab countries a 'U.N. Security Council resolution to condemn?Iran's blocking of?the Strait?of Hormuz?as a response to?an U.S. Mike Waltz, the U.S. Ambassador to U.N. said Monday. Waltz stated that negotiations on the resolution will be held this week. This follows the blocking of a resolution by permanent Security Council members Russia, and China last month. Washington had hoped the resolution would galvanize international efforts to restore the freedom of navigation along the waterway. Key Details The United States is co-drafting the new resolution with?Bahrain, and has input from?Kuwait, Qatar, the United Arab Emirates and Saudi Arabia. Waltz, who spoke to reporters during a press briefing, said that the United Arab Emirates, Kuwait, Qatar and Saudi Arabia are contributing their inputs in the co-drafting of the new resolution. * The resolution will require Iran to stop attacking merchant shipping and attempting to impose tolls in the strait. It will also demand that 'Iran cease placing sea mines, and reveal the locations of mines. Waltz claims that the draft resolution is "narrower" than the failed previous?resolution, and is being drafted while there is a 'ceasefire' with Iran. He said that the focus of this resolution is on?mining of international waterways, and on 'tolling', both of which are detrimental to all economies, but particularly those of Asia. (Reporting and editing by Cynthia Osterman; Simon Lewis)
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Admiral: US destroys six Iranian small vessels, shoots down drones and missiles
U.S. military said Monday that it had destroyed six Iranian small boats, intercepted Iranian drones and cruise missiles fired by Tehran and launched an operation to 'free up shipping in the Strait of Hormuz. U.S. Central Command chief Admiral Brad Cooper declined to say whether he believed the ceasefire that began on April 8 was still in effect. He acknowledged that the Islamic Revolutionary Guard Corps' (IRGC) aims to "interfere with" President Donald Trump’s efforts to open up the vital waterway for commercial traffic. The IRGC launched drones and small boats as well as cruise missiles at the ships that we are protecting. He said that defensive munitions had been used to defeat each of these threats. Cooper stated that he had "strongly advised' the Iranian forces to keep a safe distance from U.S. military assets as they launched this operation. He said it involved 15,000 U.S. soldiers, U.S. Navy Destroyers, more than 100 aircraft, both land and sea-based, and undersea resources. He said that the U.S. commanders on the ground have all the authority necessary to protect their units, and to "defend" commercial shipping. Cooper, when asked if the U.S. Military escorted ships, said that there was no traditional escort but rather a multi-layered, larger defensive arrangement which included ships, aircrafts, helicopters and 'electronic warfare' to defend against Iranian threats. "If you are escorting the ship, it's like playing one-on-one. He said, "I think we have a better defensive arrangement with this process." "We have much more defensive options than you could have had if you were just escorting." Cooper stated that a "U.S. Cooper said a?U.S.
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SAC begins sale of controlling interest in Sicily's Catania Airport
SAC, the operator of Sicily’s Catania Airport, announced?on Monday that it had?launched a?process for selling a stake of?at least 51% of the company. Catania, Sicily's principal airport, is Italy's fifth-busiest airport in terms of passenger traffic. SAC, owned by local authorities and chambers, operates the airport under a concession that runs until 2049. SAC manages Comiso Airport?in southern Sicily. SAC stated in a press release that bidders are required to submit their?offers? by June?3. Since 2022, the privatisation of Catania Airport has been planned. Italian investment bank Mediobanca is the adviser appointed to guide the sale process. Sources told? ?in October. The sources said at the time that ADQ, Abu?Dhabi’s sovereign wealth fund, had also?emerged? as a possible suitor. Two people who are familiar with the situation also said that Italian infrastructure fund F2i and infrastructure?firm Mundys could be bidders. Reporting by Gianluca Smeraro, Elvira pollin and Susan Fenton.
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Wall St. falls as Middle East tensions cause new jitters
Wall Street's major indexes fell on Monday as conflicting reports about a U.S. Warship near the Strait of Hormuz exacerbated tensions in the Middle East and dampened the?optimism of the previous week's earnings. Tehran claimed that it had forced a U.S. Warship to turn around 'after it attempted to enter the Strait of Hormuz. Iran's semiofficial Fars News Agency reported that two missiles hit the warship. However, the United States has denied this report. The United Arab Emirates said that it also intercepted 3 missiles fired by Iran over its territorial water, and a 4th one crashed into the sea. Investors paused after a strong week of earnings to assess the aggressive rhetoric from Washington and Tehran, and the potential for a new escalation. Oil prices remain high, and the?conflict is now in its third monthly. This has continued to exacerbate the effects of this conflict on global economic growth. Brent crude futures jumped 5.4% on Sunday and are now trading at $114 per barrel. The longer oil prices remain above $100 per barrel, the more fiscal stimulus provided by the tax cuts that were passed in 2025 will act as a shock-absorber, said Brock Weimer. At 12:01 p.m. ET, the Dow Jones Industrial Average fell 429.90 points or 0.87% to 49,069.37. The S&P 500 shed 32.63?points or 0.45% to 7,197.49. At 12:00 p.m. ET, the Dow Jones Industrial Average dropped 429.90?points or 0.87% to 49,069.37. The S&P 500 lost 32.63 points or 0.45% to 7,197.49. And the Nasdaq Composite fell 101.96?points or 0.41% to 25,012.49. Weimer stated that after a 10% increase in the S&P?500 index in April, a consolidation period is?reasonable? and that the pace of growth may slow down in the coming weeks. Ten of the eleven main S&P sectors were in red. The CBOE Volatility Index (Wall Street's "fear indicator") was up 1.44 at 18.39. The markets are also preparing for a historically lower six-month period for stocks, starting in May. According to Fidelity data, from 1945 to April 2026 the S&P 500 gained on average about 2% between May and October. This compares to an average gain of 7% between November and April. Adam Turnquist is chief technical strategist for LPL Financial. He said that seasonal patterns are useful in the past, but not always reliable indicators of what's to come. "An ease in tensions in the Middle East, and a drop in oil prices could provide ongoing support for stocks, especially if earnings are resilient." Berkshire Hathaway announced on Saturday that they were a net seller of stocks for the fourteenth consecutive quarter. Conglomerate is often seen as a bellwether for the U.S. economic climate. Its insights into market conditions and valuations are closely monitored. GameStop shares fell 8.5%, while eBay's rose 5.8%. This is after the video game retailer announced a proposal for a cash and stock deal worth $56 billion. Shares in logistics firms FedEx and United Parcel Service dropped nearly 10% after Amazon.com announced on Monday that it would be rolling out "Amazon Supply Chain Services", allowing other businesses to access its logistics network. The pair lowered the Dow Jones Transportation Average to its lowest level in almost a month, 4.3%. Norwegian Cruise Lines dropped by 8.5% after reducing its annual forecast because of higher fuel prices. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.98 to 1 and 1.29 to 1 on the Nasdaq. The S&P 500 recorded 26 new 52-week lows and 17 highs, while Nasdaq Composite registered 111 highs and 50 lows. (Reporting and editing by Arun K. Koyyur, Pooja D. Desai and Utkarsh H. Hathi from Bengaluru)
As war disrupts Asia's second-car market, Lamborghinis are stranded on the island of Sri Lanka
Umar Ali Hyder Ali, who runs a used car business in Japan, has been plagued by headaches since the U.S. and Israeli attacks on Iran last month.
Hyder Ali has lived in Japan for 20 years. He ships his used cars to South Asia, the Middle East, and Africa. The vehicles are sought after for their relative good condition and durability, thanks to the strict Japanese regulations which require regular inspections and maintenance.
He woke up days after the start of the war to find out that one of his shipments, which included more than 500 vehicles, was stuck at sea. The vessel couldn't get into Sri Lanka as the port was full of cargo diverted from Dubai.
He said that the cars we had already sent to Sri Lanka sat in the ocean waiting to be loaded because there wasn't enough space. The vehicles were finally offloaded last week at the Hambantota Port, more than ten days late.
Hyder Ali's troubles illustrate how the Middle East Crisis and the Near Closure of the Strait of Hormuz is upending the business of used-car dealers in Japan and South Korea. These are mostly small businesses, but together they make up a global industry.
Hyder Ali stated that PORT CONGESTION CAUSES "PANIC" The port congestion caused "panic", among Japanese shipping companies. Some of them cancelled shipments. Other companies suggested diverting cargo into ports in Pakistan and China. One company asked for $5,000 on each vehicle. He said that some of his cars may be brought back to Japan. Kobe Motor in Yokohama ships 18,000 cars a month, mainly to Sri Lanka where small Toyotas and Hondas are popular. He has 50 used luxury cars, including Rolls-Royces and Lamborghinis, that he is currently offloading in Sri Lanka and China, because his ships were unable to reach Dubai, where Middle East customers were waiting.
He said that air freight was an option for certain clients but only the wealthy could afford it. Japan and South Korea export used cars worth $19 billion in total last year. Japan accounted for slightly more than half. Trade data revealed that more than a third of the 883,000 second-hand cars South Korea exports last year were shipped to the Middle East.
According to data from the finance ministry, the UAE was Japan's top destination for used vehicles last year. It accounted for 224,000 units or 15% of all used car export volumes. Dubai is at a bottleneck due to the Strait of Hormuz. This narrow shipping lane connects Iran and Oman. Exporters will face increasing pressure if the war continues, including higher oil costs, currency fluctuations, lower auction prices, and even possible shipping route cuts.
SHIPMENTS FROM SOUTH KOREAN HALTED The conflict in South Korea has stopped shipments in what is normally the busiest time for used car dealers. Demand usually peaks between March and September due to construction and travel in the Middle East.
Kang Tae Yang, an official with a shipping firm, revealed that activity at a complex for storing vehicles in Incheon has dropped sharply. Around 80% of the cars stored there are usually destined for the Middle East. Kang Tae-yang, a shipping company official, said that more than 70% of the vehicles he owns are currently in storage. He added that vessels at sea have either paused or diverted their voyages rather than continue to their intended destinations. The vehicles parked in storage facilities at Incheon were unable to move due to disruptions to the transportation system, and those loaded on ships did not reach their intended destinations.
Some ships are planning to unload their cargo in alternative locations, such as the Middle East, or even further away to avoid the Strait of Hormuz. Dealers stated that this was a decision largely made by shipping companies, and dealers were in discussions with them to understand contingency plans.
"We have no other choice than to wait and hold mode whenever war breaks out," said Jin Jae Woong, president of the used car dealership Automobile International.
Middle Eastern buyers are fond of models such as Hyundai Motors' Avante MD and Kia K3?
Jin stated that the conflict began just when prices would usually begin to increase. He added that his company paid about 40 million won per month to "store" vehicles purchased in South Korea.
He plans to buy cars in advance during the recession, assuming that demand will increase once the conflict is over. Exporters have limited options when it comes to finding alternative markets. Ventus Auto's president Yun?Seung hyun said that Africa and Latin America lack the demand to absorb more sales. Containers that his company sent in late January should have arrived at Dubai's Jebel Ali port in early march, but are still delayed. Ships operated by South Korea’s HMM are stuck near Mumbai in India's west. He said that rising oil prices also increased freight rates. Ventus Auto, which generates annual revenues of 6.6 billion won, is largely dependent on the UAE. The disruption is a serious risk because it's impossible to know where the cargo will be shipped. "There is no solution at this time," Yun said.
(source: Reuters)