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✅ U.S. stocks hit fresh intraday records on Wednesday as investors weighed President Trump’s signal of confidence that the Iran war will end soon.

✅ U.S. and Iranian officials are expected to resume peace talks in Pakistan next week amid ongoing tensions in the region, with both sides signaling cautious optimism despite unresolved disputes and continued instability around key energy and shipping routes.

✅ President Trump’s comments suggesting he may fire Federal Reserve Chair Jerome Powell after his term expires have intensified political pressure on the central bank, as leadership succession plans and an ongoing legal inquiry add further uncertainty.

✅ Starbucks is integrating ordering capabilities into ChatGPT as OpenAI expands its push into AI-driven commerce, allowing users to discover and customize drinks through conversation before completing purchases in the company’s own app or website.

✅ Allbirds shares surged more than 600% after the company announced a dramatic pivot from footwear into an AI-focused business, including a rebrand to NewBird AI and plans to raise capital for compute infrastructure investments.

✅ Snap is cutting 16% of its workforce as part of a broader restructuring tied to AI-driven efficiency gains and cost reductions, with management citing productivity improvements and a stronger path toward profitability.

MARKET SNAPSHOT

↘ Dow                            48,463.72                         - 0.15%
↗ Nasdaq                       24,016.02                        + 1.59%
↗ S&P                              7,022.95                        + 0.80% 

U.S. And Iran Expected to Resume Peace Talks in Pakistan as Diplomatic Push Continues Amid Rising Tensions

U.S. and Iranian officials are likely to meet in Pakistan next week for a second round of peace negotiations, according to two senior Pakistani officials cited by MS NOW, as efforts continue to reach a diplomatic resolution to the ongoing conflict.

“Discussions are being had” and “we feel good about the prospects of a deal,” White House press secretary Karoline Leavitt said Wednesday, signaling cautious optimism from the administration.

The renewed talks would follow an initial round of negotiations held over the weekend, which ended without an agreement after marathon discussions involving U.S. Vice President JD Vance, special envoy Steve Witkoff, and Trump’s son-in-law Jared Kushner.

Pakistan is expected to again serve as the mediator, continuing its role as the central channel for communication between the two sides.

Tensions in the region remain elevated, with instability in the Persian Gulf and disruptions to shipping through the Strait of Hormuz. Iran has threatened vessels passing through the waterway, while the U.S. has imposed retaliatory measures, contributing to reduced tanker traffic.

Iranian state media also reported that Tehran has suspended all petrochemical exports until further notice, adding to market concerns over energy supply.

Despite ongoing risks, the White House emphasized that it remains cautiously optimistic about progress, while noting that the next round of talks has not yet been formally confirmed.

Leavitt said any future in-person negotiations would “very likely” take place in Islamabad, where the previous round was held.

President Donald Trump had previously linked the ceasefire framework to full reopening of key shipping routes, underscoring the strategic importance of the Strait of Hormuz in the broader negotiations.

While no agreement has yet been reached, officials on both sides continue to signal that diplomatic channels remain open as efforts to stabilize the conflict move forward.

Trump Threatens Fed Chair Powell Removal as Political Pressure on Central Bank Intensifies

President Donald Trump said he would consider firing Federal Reserve Chair Jerome Powell if he does not step aside when his term as chair ends next month, escalating tensions between the White House and the central bank.

“I’ll have to fire him, OK?” Trump said in a Wednesday morning interview with Fox Business.

The comments add to a long-running series of criticisms of Powell and come as the process to nominate his potential successor moves forward.

Powell’s term as Fed Chair expires on May 15, though his tenure as a Federal Reserve governor extends until 2028. He has indicated he would remain on the Board of Governors if necessary, particularly while a separate legal investigation remains unresolved.

Powell has also said he would stay on as “chair pro tem” if a successor is not confirmed in time, noting that this is consistent with past transitions at the central bank.

Trump’s nominee to replace Powell, Kevin Warsh, is scheduled to appear before the Senate Banking Committee next week, though confirmation remains uncertain. Political resistance in the Senate could complicate the timeline, potentially delaying a leadership transition beyond Powell’s current term.

The dispute is further complicated by an ongoing Justice Department inquiry into whether Powell misled Congress regarding cost overruns on the Federal Reserve’s headquarters renovation. Powell has denied wrongdoing and suggested the probe is politically motivated, while a federal judge recently invalidated subpoenas tied to the investigation.

Trump has continued to push for the investigation to proceed, arguing that it is necessary to fully examine what he describes as excessive spending on the project.

Starbucks Brings Ordering into ChatGPT as OpenAI Expands AI-Driven Shopping Discovery

Starbucks (SBUX) is testing a new app inside OpenAI’s ChatGPT, marking another step in the company’s push to integrate AI into product discovery and shopping experiences.

Customers can now describe what they want—such as “an afternoon boost that isn’t too sweet”—or even upload images, and ChatGPT will recommend drink options. The tool is designed to make ordering more conversational and personalized.

Users will be able to customize drinks and select pickup locations directly within ChatGPT, but final checkout still takes place in the Starbucks app or website.

The rollout reflects OpenAI’s broader effort to position ChatGPT as a shopping and discovery platform rather than just a conversational assistant. The company has previously worked with major retailers including Walmart (WMT) and Target (TGT) on similar integrations.

OpenAI initially experimented with enabling direct purchases through “Instant Checkout” in ChatGPT, but has since scaled back that feature in favor of a more discovery-focused approach.

Allbirds Soars More Than 600% As Shoemaker Rebrands into an AI Company

Allbirds (BIRD) shares surged more than 600% on Wednesday after the company announced a dramatic shift from its sustainable footwear business into an artificial intelligence-focused firm.

The stock climbed as high as $23 per share before settling near $18, compared with levels below $3 just days earlier.

The company also revealed plans to rebrand as NewBird AI and raise $50 million in new capital, with the funding expected to close in the second quarter of 2026.

In late March, Allbirds sold its footwear assets to American Exchange Group, the parent company of brands including Aerosoles and Ed Hardy, for $39 million.

Under its new strategy, NewBird AI plans to focus on acquiring high-performance, low-latency AI compute hardware and offering it via long-term lease arrangements, targeting demand that it says cannot be reliably met by spot markets or large hyperscalers.

Snap Inc. (SNAP) is the latest tech company to lean into the AI efficiency narrative, announcing a major workforce reduction alongside its broader restructuring efforts.

In a letter to employees filed with the Securities and Exchange Commission, the company said it will cut roughly 16% of its workforce — about 1,000 roles.

“While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” CEO Evan Spiegel wrote in the filing.

Management says “small squads” are already using AI tools to improve execution across areas such as Snapchat+ and advertising platform performance.

The move also aligns with Snap’s financial targets, including a plan to reduce roughly $500 million in annualized costs by late 2026 as it pursues a clearer path to sustained profitability.

Snap’s stock rose nearly 6% following the announcement, offering a brief rebound after a challenging year in which shares remain down about 25%.

The company said U.S.-based employees impacted by the layoffs will receive four months of severance and healthcare benefits, while international support will vary by region.

The restructuring reflects a broader trend across the tech sector, where companies are increasingly citing AI-driven productivity gains while simultaneously reducing headcount to improve margins.

📉 ON THE MOVE AND NOTABLES 📈

✔️ U.S. equities traded higher again on Wednesday, led by gains in technology and financial stocks. Top of Form

✔️ Treasury yields were moving up, with the 10-year at 4.27%.

✔️ Overseas, Asian markets closed higher overnight, while European markets are lower, suggesting a more cautious global tone.

✔️ The U.S. dollar is strengthening against major currencies.

✔️ In commodities, WTI crude oil is easing as reports indicate the U.S. and Iran may pursue a second round of talks. Futures markets suggest oil prices could trend toward the mid-$70s by year-end.

✔️ Copper edged lower as traders eyed the prospect of peace negotiations between the US and Iran.

✔️ Bank of America and Morgan Stanley reported first-quarter results ahead of the open, with both exceeding earnings-per-share expectations, offering a positive early signal for earnings season.

✔️ Bank of America cited solid client activity, steady consumer spending, and stable asset quality, pointing to ongoing economic resilience.

✔️ Morgan Stanley rose following stronger-than-expected quarterly results. Credit loss provisions fell, while trading revenue improved across both fixed income and equities, helped by increased market volatility. Equity net revenue increased 25% year-over-year, while fixed income revenue rose 29%.

✔️ S&P 500 earnings are projected to grow 2.5% year-over-year in the first quarter, led by technology, followed by materials and financials.

✔️ U.S. import prices increased 0.8% in March month-over-month, below expectations for a 2.5% gain. The rise was largely driven by higher fuel and lubricant costs, which climbed 2.9%, while price pressures outside of energy remained relatively subdued. On a year-over-year basis, import prices rose 2.1%, significantly below the 3.3% pace of overall CPI inflation.

✔️ ASML, the semiconductor equipment maker essential for advanced chip production, fell after reporting earnings. While results exceeded expectations, shares declined on weaker-than-expected second-quarter guidance, which came in below consensus. Full-year guidance was in line with forecasts.

✔️ Chip stocks broadly moved lower in early trading, likely reflecting a mix of profit-taking after recent gains and reaction to ASML’s softer outlook. Notable decliners ahead of the open included Micron (MU), CoreWeave (CRWV), Western Digital (WDC), and Advanced Micro Devices (AMD).

✔️ Broadcom (AVGO) gained after announcing a multi-year partnership with Meta Platforms to support AI compute infrastructure.

✔️ Nike (NKE) advanced after insider buying activity, including purchases by its CEO and president.

✔️ Micron (MU) fell 4% on profit-taking Wednesday but remains up 40% since the start of April.

✔️ Snap (SNAP) surged after announcing plans to reduce up to 16% of its global workforce, citing efficiencies driven by artificial intelligence.

✔️ Tesla (TSLA) climbed following an upgrade from UBS.

✔️ Market pricing continues to show near-certainty of a pause at this month’s Federal Reserve meeting, according to the CME FedWatch Tool, with roughly a 30% probability of at least one rate cut later this year.

✔️ Treasury Secretary Scott Bessent told CNBC that he understands the Fed’s cautious stance in the current environment but noted that core inflation—excluding food and energy—continues to trend lower. He also suggested that ongoing geopolitical conflict may weigh on first-quarter GDP growth.

✔️ The March Producer Price Index (PPI) came in slightly softer than expected overall, though select components feeding into the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rose modestly, including airfares.

✔️ Robinhood (HOOD) stock jumped, extending gains from the prior session after the Securities and Exchange Commission (SEC) announced the removal of long-standing day trading limits for small investors.

💲What Else to Watch This Week💲

🟢 April 16: March industrial production and expected earnings from Taiwan Semiconductor Manufacturing (TSM), PepsiCo (PEP), Abbott Laboratories (ABT), Prologis (PLD), Marsh & McLennan (MRSH), Bank of New York Mellon (BK), U.S. Bancorp (USB), Travelers (TRV), Infosys (INFY), Netflix (NFLX), and Alcoa (AA).

🟢 April 17: March housing starts and building permits and expected earnings from Truist Financial (TFC), Fifth Third Bancorp (FITB), and State Street (STT).

🟢 April 20: Expected earnings from Cleveland-Cliffs (CLF) and Steel Dynamics (STLD).

🟢 April 21: Expected earnings from GE Aerospace (GE), UnitedHealth Group (UNH), RTX (RTX), Danaher (DHR), Northrup Grumman (NOC), 3M (MMM), D.R Horton (DHI), Intuitive Surgical (ISRG), Chubb Limited (CB), Capital One Financial (COF), and United Airlines (UAL).

🟢 April 22: Expected earnings from GE Vernova (GEV), Philip Morris (PM), AT&T (T), Boeing (BA), Tesla (TSLA), Lam Research (LRCK), IBM (IBM), Texas Instruments (TXN), ServiceNow (NOW), and CSX (CSX).

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