Wall Street closed sharply lower on Monday, with the Dow falling 537 points (-1.07%) to 49,526, the S&P 500 dropping 1.24% to 7,408, and the Nasdaq sliding 1.54% to 26,225. Rising Treasury yields, surging oil prices, and escalating US-Iran tensions drove the selloff.
Brent crude topped $110 a barrel — up more than 50% since late February — as fears of supply disruptions through the Strait of Hormuz kept the risk premium elevated. The 10-year Treasury yield hit a decade high near 4.63%, adding pressure on equities.
Beneath the macro turmoil, the Q1 2026 earnings season remains one of the strongest in years. FactSet estimates S&P 500 earnings grew 27.7% year-over-year — the fastest pace since late 2021 — with most companies beating expectations and expanding margins.
Today's Key Earnings
Baidu (BIDU) reported Q1 2026 revenue of RMB 32.1 billion ($4.65B), slightly below analyst expectations of ~RMB 34.2 billion. However, adjusted EPS of RMB 12.06 beat the consensus of RMB 11.43 by 5.5%. The standout number: AI cloud infrastructure revenue surged 79% YoY to RMB 8.8 billion, with GPU cloud revenue jumping 184%. For the first time, AI Core revenue crossed 50% of Baidu Core business revenue, reaching 52%.
Ryanair (RYAAY) reported FY2026 results with a pre-exceptional profit after tax of €2.26 billion — up 40% YoY. The airline carried a record 208.4 million passengers (+4%), and total revenue rose 11% to €15.54 billion. Average fares increased about 10% to €51 per passenger. The company operates debt-free with a strong cash position. FY2027 traffic guidance: 216 million passengers.
Brady Corp (BRC) beat Q3 fiscal 2026 estimates across the board. Revenue of $435.2 million topped the ~$410M consensus by 6%, while adjusted EPS of $1.50 beat the $1.35 estimate by 11.5%. The company raised its full-year adjusted EPS guidance, sending the stock up 5% in trading.
SpaceX IPO — Megadeal in the Making
The biggest IPO story this week: SpaceX is expected to file its public S-1 prospectus soon — possibly as early as this week. The company confidentially filed a draft S-1 with the SEC on April 1, targeting a valuation above $2 trillion.
According to reports from Reuters, Barron's, and CNBC, the accelerated timeline includes:
- Public S-1 filing: this week (May 17-22)
- Roadshow: early June (possibly June 4)
- Pricing: as early as June 11
- Nasdaq listing under ticker SPCX: potentially June 12
The IPO could raise up to $75 billion — by far the largest on record. Shareholders recently approved a 5-for-1 stock split, processing this week, adjusting the fair market value to approximately $105.32 per share.
Cerebras Debut Still Making Waves
Cerebras Systems (CBRS), which priced last week's IPO at $185 per share, saw its debut day close at $311.07 — a 68% surge. The AI chip company raised $5.55 billion in the largest US tech IPO so far in 2026. The stock has since settled around $280 but remains well above its IPO price.
Looking Ahead
The marquee event this week is Nvidia (NVDA) earnings on Wednesday after the close — viewed as the single most important barometer for the AI trade and Big Tech's profitability trajectory.
Other notable reports this week: Home Depot (HD) on Tuesday, Walmart (WMT) and Deere & Co (DE) on Wednesday.
Markets will remain laser-focused on Middle East developments and oil prices. The question hanging over the rest of earnings season: can record corporate profitability outweigh the macro headwinds of rising energy costs and sticky inflation?
