WS #5714

The primary market-moving signal in this window is the abrupt departure of US Navy Secretary John Phelan, announced by the Pentagon with immediate effect. This development occurs amid the ongoing Iran conflict and a 'war of blockades' in the Strait of Hormuz, as reported by BBC and GDELT, suggesting potential instability in US military leadership during a critical geopolitical standoff. This could heighten uncertainty in energy markets and defense sectors. Additionally, Tesla reported Q1 earnings with revenue up 16% and profit up 17%, driven by improved deliveries, providing a positive counter-narrative to recent concerns about EV demand and capex spikes. However, Tesla's capex spike for AI and autonomous vehicles, as noted earlier, remains a bearish undercurrent. Meta is reportedly planning significant layoffs in May, with a first round targeting ~10% of its workforce, citing AI-driven efficiency gains, which could pressure tech sector sentiment and META stock. South Korea's Q1 GDP growth of 3.6% exceeded expectations (2.7%), indicating stronger Asian economic momentum, potentially supportive for global growth proxies. The EU approved a €90 billion loan for Ukraine and extended sanctions on Russia, easing some geopolitical tail risks but with limited immediate market impact. The Iran conflict narrative remains stable with no major escalation or de-escalation signals, keeping oil price volatility elevated.