Nvidia did it: $5 trillion market cap. First company ever. Stock closes Friday at $208.27 (+4.3%). Intel posts its best day since 1987 — up 24% in one session after earnings smash. The semiconductor sector is now 18 days in a row green. S&P 500 closes at new all-time high of 7,165.
But the bigger story: Hormuz stays closed, Brent crashes upward to $105 (+9.7% week), and tanker rates keep exploding. DHT reports Q2 spot rates averaging $135,000/day — their time-charter coverage shielded them from volatility. Full KW17 breakdown below.
Powell's Last FOMC: Dovish Farewell
Wednesday, 14:30 ET: Powell holds his last FOMC press conference before May 2026 resignation. Fed leaves range at 3.5–3.75% — as expected. But tone notably dovish:
- "We're watching Hormuz closely" — no "transitory" wording this time.
- Dot plot shifts: 9 of 19 members now expect 1–2 cuts in 2026 (was 7).
- Reverse repo expanded — signaling banking sector liquidity concerns.
Market reaction: 10-year Treasury yield from 4.42% to 4.28%, Gold +1.8% to $4,812, S&P +1.4% on the day.
Earnings Tsunami: AAPL, MSFT, TSLA, CVX
Apple (AAPL): EPS $2.18 vs $2.11 expected
Services revenue +18% YoY to $32.4B. iPhone +6%. Gross margin 47.2%. Stock +3.1% after-hours. Buyback expanded by $90B. Dividend: $0.28/quarter (+5%).
Microsoft (MSFT): EPS $4.02 vs $3.71 expected
Azure growth +44% YoY (vs. +37% expected). Office Suite with AI Premium at $42B run-rate. Stock +5.8% after-hours. Q3 free cash flow: $32.1B.
Tesla (TSLA): EPS $0.72 vs $0.68 expected — Robotaxi Hype
Auto margins surprise positively (15.4%). Robotaxi pilot in 12 cities announced for 2026. Optimus pre-orders at 240,000. Stock +12.4% after-hours.
Chevron (CVX): EPS $3.82 vs $3.11 expected — Hormuz Boost
Upstream earnings $7.8B (Q1: $5.1B). Permian production 925k boe/d (+9%). Free cash flow $9.4B, dividend $1.71 (+5%) confirmed. Q2 buyback $5.5B. Hormuz premium flows directly through.
Tankers: VLCC Still High
DHT released Q2 preliminary numbers: spot rates averaging $135,000/day — but time-charter coverage of 65% protected them from intraday volatility. Frontline similar. My take: anyone not yet in tanker stocks is too late — but for existing positions, hold.
My Portfolio End KW17
Portfolio value: $97,840 (+1.5% vs end KW16). Best performer: Chevron (+8.2% via earnings beat), FRO (+5.1% via VLCC story), BAT (+3.4% via dividend hike).
Buys: Tesla position increased by 0.4% of portfolio (Robotaxi optionality). Sells: small BHP position closed after 14% gain YTD — lithium story already priced in.
Outlook KW18
- Monday: ECB meeting (Lagarde) — market expects 25 bp cut.
- Wednesday: US CPI April — focus on energy and housing components.
- Thursday: ConocoPhillips, Devon Energy, Antero Resources earnings.