## MARKET MOOD: RISK-OFF
Overnight sentiment turned risk-off as concerns over rising oil prices and geopolitical tensions with Iran weighed on investor confidence. U.S. stock futures dipped ahead of critical economic data releases, contributing to a cautious market environment.
## TOP 5 HEADLINES
1. Oil prices hit six-month highs after Trump warns Iran of "bad things" if there's no deal → Impact: Higher oil prices could pressure inflation and impact consumer spending.
2. U.S. equity funds see largest weekly inflow in five weeks → Impact: Indicates strong investor interest in equities despite geopolitical tensions.
3. GDP grew 2.2% in 2025; the economy might do even better this year → Impact: Positive economic outlook may support market resilience despite current volatility.
4. Trump threatens Iran with force → Impact: Heightened geopolitical risks could lead to increased market volatility.
5. Gold prices muted amid U.S.-Iran tensions, Fed caution; set for weekly loss → Impact: Investor caution regarding gold reflects uncertainty in safe-haven assets.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**$OPEN** - Stock rallies after showing progress in pivot to a leaner business model.
**$NEE** - Gains on bullish analyst upgrades amid renewable energy demand.
**$AMD** - Positive sentiment following reports of new customer wins.
**$AAPL** - Continues to attract interest as it implements strategic changes.
### Shorts (Bearish Catalysts)
**$WMT** - Downgraded by HSBC amid a conservative outlook for 2026.
**$LNB** - Falls after disappointing earnings report, missing revenue estimates.
**$LYV** - Negative sentiment ahead of earnings release due to potential revenue concerns.
**$TNDM** - Downgraded by analysts over margin pressures in the diabetes care market.
## INDEX BIAS
**SPY:** BEARISH - Current geopolitical tensions and rising oil prices create uncertainty.
**QQQ:** BEARISH - Tech stocks are under pressure from macroeconomic fears and earnings concerns.
**IWM:** BEARISH - Small caps are vulnerable to economic slowdown fears and higher interest rates.
## SECTORS
**Favor:** Energy - Rising oil prices could boost earnings for energy companies.
**Avoid:** Consumer Discretionary - Increased inflation could hurt consumer spending.
## CATALYST WATCH
Events today that could move markets:
- 10:00 AM ET: U.S. GDP data release.
- 10:30 AM ET: EIA crude oil inventories report.
## BOTTOM LINE
**Today's Play:** SELECTIVE
Today's trading approach should be selective, focusing on sectors like energy that could benefit from rising oil prices while avoiding consumer discretionary stocks facing headwinds from inflation. Geopolitical tensions and upcoming economic data releases pose significant risks, making this a cautious trading environment.
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