Markets jump on hopes of peace in the Middle East, but can the gains sustain? The Daily Breakdown dives into Monday’s action.
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What’s Happening?
Markets are rallying on hopes that Middle East tensions may start to cool after President Trump said the US and Iran had “very good” conversations about ending the conflict. The S&P 500 and Nasdaq 100 are each up about 1.4%, while Bitcoin is gaining roughly 3.5%. Gold and oil, meanwhile, are lower by about 2.5% and 6.5%, respectively. Still, skeptics warn the conflict may drag on and that the softer rhetoric could be more about calming markets and energy prices than signaling a true resolution.
There are not many major economic reports in focus this week, and the earnings calendar is fairly quiet as well, with just a few notable names on deck, including GameStop, Ondas, Chewy, Cintas, and Carnival.
ICYMI: JPMorgan’s Deep Dive
⚡ Crypto Corner
A week ago, Bitcoin rallied through the key $74K level, climbing as high as $76K before pulling back below $70K. Now moving higher again this morning, crypto appears to be embracing the potential shift in the geopolitical backdrop.
Shiba and Stellar are also on the move, while Bittensor, Filecoin, Avalanche, and Kaito are outpacing Bitcoin’s gains this morning. Visit the Crypto Discovery page for more.
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The Setup — General Electric
Shares of General Electric have been on fire over the past few years, rising almost 500% from 2023 through 2025. Now though, the stock has suffered a near-20% decline.
Shares of GE are in the midst of a pullback to the 200-day moving average and a multi-month support area around $280 to $290. If support holds, bulls might look for a rebound. However, more downside could be in store if support breaks.
Options
One downside to GE is its share price. Because the stock price is so high, the options prices are incredibly high, too. This can make it difficult for investors to approach these companies with options. In that case, many traders may opt to just trade a few shares of the common stock — and that’s fine. However, one alternative is spreads.
Call spreads and put spreads allow traders to take options trades with a much lower premium than buying the calls outright. In these cases, the maximum risk is the premium paid.
Options aren’t for everyone — especially in these scenarios — but spreads make them more accessible. For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
SMCI
Shares of Super Micro Computer plunged on Friday after a former co-founder and current board member was indicted in an alleged scheme to divert Nvidia chips and servers to China. While Super Micro says the conduct violated company policy and has moved to distance itself, Wall Street is now questioning whether this was an isolated incident or a sign of deeper governance and compliance issues. Dig into the fundamentals for SMCI.
USO
The top-traded oil ETF — USO — is back in focus on Monday morning as oil prices retreat below $100. At last check, WTI crude was trading near $91 a barrel, while USO was lower by more than 6% in pre-market trading. For what it’s worth, the energy sector ETF — XLE — is down about 1% this morning, although energy remains the top-performing sector in the S&P 500. Check out the chart for USO.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.