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Afternoon Note

Awaiting The Deadline

By John Jean, Research Analyst
4/7/2026 1:29 PM

Major indices are rebounding from earlier lows driven by fluctuating geopolitical tensions ahead of Trump’s 8:0 p.m. EST negotiation deadline with Iran. Oil prices edged higher after the US and Israel begin limited targeting of bridges and power infrastructure in Iran as the negotiation deadline approaches.

Three sectors are in the green with Utilities (XLU) and Energy (XLE) leading the higher. Notably, Communication Services (XLC) is also in the green and getting a boost from Alphabet (GOOG/L), after the company made a deal with Broadcom (AVGO) for supplying custom AI TPUs along with networking and other components for Google's next-generation AI data center racks through 2031. On the other hand, Consumer Staples (XLP) and Consumer Discretionary (XLY) are tied for last place.

Earlier this morning, Trump posted that big strikes on infrastructure will come tonight if no deal is reached. The administration also indicated the war could conclude shortly and that they expect a response from Iran by 8 PM EST. However, Trump did note the deadline could change if negotiations progress meaningfully. It is also worth noting that some IRGC officials have indicated that the closure of the Bab el-Mandeb Strait may come as a response to strikes.

In other news, Intel (INTC) has joined Elon Musk's Terafab project alongside SpaceX, xAI, and Tesla (TSLA), to help produce next-generation AI and robotics chips at scale.

New orders for manufactured durable goods fell 1.4% M/M in February, extending the 0.5% decline in the prior month, and missing estimates of a 0.5% decline. There was a notable 5.4% decline in transportation equipment, stemming from a 28.6% decline in nondefense aircraft. However, excluding transportation equipment new orders moved 0.8% higher, driven by metals and machinery showing strength.


 

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