Week ahead: Geopolitics, Kevin Warsh's hearing and Tesla's earnings

Financial markets began the new trading week with relatively quiet price action. However, volatility is expected to increase due to renewed U.S.-Iran tensions, Tesla’s upcoming earnings report, and Kevin Warsh’s Senate hearing.

Renewed U.S.-Iran Tensions

Tensions in the Middle East escalated over the weekend after Iran reimposed restrictions on the Strait of Hormuz in response to the ongoing U.S. naval blockade. This development led to rising oil and dollar prices, while risk assets such as equities and cryptocurrencies declined. The ceasefire between the U.S. and Iran is set to expire on Tuesday, adding uncertainty ahead of potential peace talks. Iran’s Foreign Ministry spokesperson, Esmail Baghaei, stated on Monday that there are currently no plans to attend talks with the U.S., though he did not rule them out entirely.

Tesla Q1 earnings

Electric vehicle leader Tesla (NASDAQ: TSLA) is scheduled to release its Q1 2026 earnings on Wednesday after market close. Analysts forecast earnings per share (EPS) of $0.36 on revenue of $22.28 billion. For the first quarter of 2026, Tesla’s deliveries fell short of Wall Street expectations. Tesla stock surged nearly 15% last week. It will be important to see if Tesla can sustain this momentum following the earnings announcement. Other notable earnings this week include United Airlines, UnitedHealth, GE, RTX, 3M, Halliburton, Capital One, and Interactive Brokers.

Kevin Warsh's Senate hearing

In addition to geopolitical developments and corporate earnings, investors are closely watching the U.S. Senate Banking Committee hearing for Kevin Warsh, President Trump’s nominee for Federal Reserve chair. The hearing is scheduled for Tuesday, where lawmakers are expected to question Warsh on his monetary policy views. Market participants will look for clues about the future direction of Federal Reserve policy. Currently, markets price in a 68% probability of Fed rate cuts beginning in June.

Bottom Line: Anticipate potential market volatility this week as it reacts to the latest earnings reports and the Federal Reserve's policy update, all while navigating the ongoing geopolitical situation. Stay cautious and be ready for potential moves!

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