“Music is the universal language of mankind.” ✍️

– Henry Wadsworth Longfellow

SUMMARY

✅ U.S. stocks barely made it into the green on Tuesday as President Trump intensified his bombing threats ahead of a looming deadline for Iran to reopen the Strait of Hormuz, warning of potential strikes on key infrastructure if it fails to comply.

✅ President Trump escalated his threats against Iran, setting a deadline for reopening the Strait of Hormuz after U.S. strikes, while diplomatic efforts remain uncertain and global energy markets react.

✅ Apple shares fell amid reports that engineering challenges could delay the company’s first foldable iPhone, raising concerns about meeting the September 2026 launch timeline.

✅ Pershing Square proposed a $64 billion takeover of Universal Music Group, offering a 78% premium per share and driving UMG stock sharply higher as the deal aims to address long-standing structural issues.

✅ Anthropic launched Project Glasswing, a cybersecurity alliance with major tech firms, after its Claude Mythos Preview AI detected thousands of critical software vulnerabilities, underscoring the urgency of defending against AI-powered cyberattacks.

✅ Soleno Therapeutics withdrew its European marketing application for its rare disease drug ahead of its $2.9 billion acquisition by Neurocrine, focusing on the U.S. market amid broader delays in European drug launches.

MARKET SNAPSHOT

↘ Dow 46,584.46    - 0.18%
↗ Nasdaq 22,017.85    + 0.098%
↗ S&P 6,616.85    + 0.076%

GOVERNMENT

Trump Escalates Threats Against Iran Amid Strikes and Stalled Diplomacy

Image courtesy of Getty Images

President Donald Trump sharply intensified his rhetoric Tuesday, warning that “a whole civilization will die tonight” unless Iran agrees to a deal that includes reopening the Strait of Hormuz.

The warning followed overnight U.S. strikes on military targets on Kharg Island, Iran’s primary oil export terminal, according to a White House official. Trump suggested the situation could mark a pivotal moment, hinting at potential regime change while expressing hope—however uncertain—for a breakthrough.

Iran has largely blocked oil shipments through the Strait of Hormuz since the conflict escalated, triggering a major global energy shock and pushing prices sharply higher. While Trump claimed Iran’s military has been “obliterated,” he acknowledged Tehran still maintains control over traffic through the critical waterway.

Tensions escalated further after Trump set a Tuesday evening deadline for Iran to reopen the strait, following earlier threats to target key infrastructure such as bridges and power plants.

Meanwhile, the status of diplomatic talks remains unclear. Reports suggest Iran may have halted direct negotiations with the U.S., though indirect discussions through mediators could still be ongoing.

The latest developments have drawn strong reactions in Washington, with lawmakers warning of the risk of a broader conflict.

Internationally, the U.K. has limited U.S. use of its military bases to defensive operations, emphasizing concerns about potential strikes on civilian infrastructure.

TECH

Apple Shares Sink on Report of Foldable iPhone Delays

Image courtesy of Future

Shares of Apple fell Tuesday following reports that the company is encountering engineering challenges with its highly anticipated foldable iPhone.

The stock dropped as much as 4% after a report indicated that development hurdles could delay Apple’s first foldable device. According to Nikkei Asia, current solutions have not fully resolved key technical issues, and additional time may be needed.

Apple had been expected to launch the foldable model alongside its iPhone 18 lineup in September 2026. However, the report raised concerns that the timeline could slip due to ongoing design and engineering constraints. A follow-up report from Bloomberg suggested the device may still be on track, helping shares recover slightly after earlier losses.

The April-to-May period is seen as critical for Apple to address these challenges ahead of mass production.

Competitors like Samsung and Huawei have offered foldable smartphones since 2019, increasing pressure on Apple to successfully enter the segment.

iPhones remain Apple’s core business, generating more than half of its $143.8 billion in revenue for the first quarter of fiscal 2026, making any potential delay especially significant.

M&A SPACE

Universal Music Stock Surges After Pershing Square’s $64 Billion Takeover Proposal

Image courtesy of Sopa Images

Activist investor Pershing Square announced Tuesday a plan to acquire Universal Music Group in a cash-and-stock deal valued at approximately €55.8 billion ($64.4 billion).

Under the proposal, UMG shareholders would receive €9.4 billion ($10.85 billion) in cash plus 0.77 shares of new stock for each existing share, valuing the transaction at €30.4 per share — a 78% premium to UMG’s April 2 closing price.

UMG shares jumped roughly 12% in early trading after falling 13% year-to-date.

Pershing Square CEO Bill Ackman said that while UMG’s management, led by CEO Lucian Grainge, has built a strong artist roster and delivered solid performance, the stock has “languished” due to issues unrelated to the music business — all of which the merger could address.

Ackman cited factors such as uncertainty over Bollore Group’s 18% stake, delays in UMG’s U.S. listing, and suboptimal shareholder engagement as reasons for underperformance.

The transaction will create a newly merged company to be listed on the New York Stock Exchange and is expected to close by the end of the year.

ARTIFICIAL INTELLIGENCE

Anthropic Unveils AI Cybersecurity Alliance After Model Finds Thousands of Critical Software Flaws

Image courtesy of Dado Ruvic via Reuters

Anthropic announced a major cybersecurity partnership on Tuesday with tech leaders including Microsoft, Amazon, and Apple, aimed at combating the growing threat of AI-driven cyberattacks.

The initiative, called Project Glasswing, is powered by Anthropic’s new AI model, Claude Mythos Preview, which will be limited to a small group of organizations focused on securing critical infrastructure. Around 40 additional companies will also gain access to help protect software systems and open-source platforms.

Anthropic said the model has already identified “thousands” of previously unknown (zero-day) vulnerabilities, including critical flaws across major operating systems and web browsers. In some cases, the AI uncovered bugs that had gone undetected for decades.

The company warned that rapid advances in AI could soon put similar capabilities in the hands of malicious actors, underscoring the urgency of the effort. “No one organization can solve these cybersecurity problems alone,” Anthropic said, emphasizing the need for collaboration across industry, government, and the open-source community.

Claude Mythos Preview is described as a highly advanced, general-purpose AI with strong coding and reasoning abilities tailored for cybersecurity. Unlike earlier models, it will not be widely released.

To support the initiative, Anthropic is committing $100 million in usage credits and $4 million in direct funding to open-source security projects.

The company is also in discussions with the U.S. government about the model’s defensive and offensive capabilities, highlighting the broader national security implications of advanced AI.

The announcement follows a recent internal code leak at Anthropic caused by human error, adding further urgency to strengthening cybersecurity defenses in the AI era.

BIOTECH

Soleno Withdraws EU Rare Disease Drug Application Ahead of Neurocrine Takeover

Image courtesy of Piotr Swiat | Lightrocket | Getty Images

Soleno Therapeutics announced Tuesday that it has voluntarily withdrawn its European marketing application for its rare metabolic disorder drug, following plans by acquirer Neurocrine Biosciences to focus on the U.S. market.

The withdrawal, ahead of Neurocrine’s $2.9 billion acquisition of Soleno, was described as “based on business and strategic considerations” and preserves the company’s ability to re-engage with regulators later.

The drug, branded Vykat XR in the U.S., is the first approved treatment for hyperphagia associated with Prader-Willi syndrome.

Neurocrine CEO Kyle Gano emphasized that the move is not related to potential risks from President Donald Trump’s most-favored-nation drug pricing policy but reflects a strategic focus on the U.S. launch for rare diseases.

A European Medicines Agency decision on the drug had been expected in mid-2026. The withdrawal comes amid a broader industry trend of delaying some new drug launches in Europe as companies adjust to shifting U.S. pricing policies.

📉 ON THE MOVE AND NOTABLES 📈

✔️ Bond yields are rising, with the 10-year Treasury yield at 4.36%.

✔️ Overseas, Asian markets were mixed overnight, while European equities are broadly lower.

✔️ The U.S. dollar is relatively unchanged.

✔️ Bitcoin led crypto markets lower overnight as the US-Israeli war against Iran has spooked riskier investors amid sky-high global volatility.

✔️ In energy markets, WTI crude has surged to $116 — its highest level since 2022 — driven by ongoing disruptions in the Strait of Hormuz. Despite the recent spike, futures markets still suggest prices could ease back toward the mid-$70 range by year-end.

✔️ Oil production from OPEC+ dropped sharply in March, marking the steepest monthly decline in decades, as the war in Iran disrupted key export routes and damaged vital energy infrastructure.

✔️ More U.S. households expect their financial situation to worsen over the next year as rising gas and food prices continue to strain budgets, according to the New York Federal Reserve’s March Survey of Consumer Expectations.

✔️ Employment report signals firmer job growth – U.S. private employers added an average of 26,000 jobs per week over the four weeks ending March 21, marking a third consecutive weekly increase and the strongest pace since the weekly ADP data series began in September 2025.

✔️ Durable goods orders come in weaker than expected – New orders for long-lasting manufactured goods fell 1.4% in February to $315 billion, marking a third straight monthly decline and missing expectations. The drop was largely driven by a 5.4% decrease in transportation equipment, with notable weakness in nondefense aircraft orders. However, excluding transportation, orders rose 0.8%, indicating that underlying demand may be more resilient than the headline figure suggests.

✔️ Health insurers surged early, led by Humana, UnitedHealth Group, and CVS, with Humana jumping 11%. The gains followed the Centers for Medicare and Medicaid Services’ (CMS) 2027 Medicare Advantage and Part D rate announcement, which analysts viewed as a meaningful positive for the sector.

✔️ Wells Fargo also lifted its price target on Humana, citing greater confidence in the company’s ability to improve margins under the updated rule.

✔️ Broadcom rose after reports that it expanded chip agreements with Alphabet and Anthropic. The deals are expected to include Broadcom helping develop Google’s custom AI chips.

✔️ Delta slipped ahead of its earnings release today. The report comes as investors focus on rising jet fuel costs, even after OPEC signaled plans to increase output next month. Analysts expect Delta to report earnings per share of $0.61, up 33% from a year ago.

✔️ Arm Holdings fell after Morgan Stanley downgraded the stock to equal weight from overweight. The firm noted that Arm’s move into chip manufacturing will take time to scale and carries near-term execution risks.

✔️ Paramount Skydance gained, supported by a Wall Street Journal report that the company secured roughly $24 billion in equity commitments from three sovereign wealth funds, led by Saudi Arabia, to help finance its planned acquisition of Warner Bros. Discovery.

✔️ In credit markets, the average option-adjusted spread on high-yield corporate bonds dropped below 3% for the first time since early March. The move may point to underlying resilience in economic and corporate fundamentals, though further tightening could be limited given potential risks spilling over from private credit markets.

✔️ Interest rate expectations turned slightly more hawkish after last Friday’s stronger-than-expected March jobs report, which showed payroll growth of 178,000. As of Tuesday morning, markets assigned roughly equal (about 10%) probabilities to either a rate cut or hike this year, while a large majority—around 79%—expect rates to remain unchanged.

✔️ Prices of used vehicles are continuing to rise and demand remains strong. A closely watched automotive industry barometer hit its highest level since the summer of 2023, according to Cox Automotive.

💲What Else to Watch This Week💲

🟢 April 8: Expected earnings from Delta Air Lines (DAL), Constellation Brands (STZ), and Applied Digital (APLD).

🟢 April 9: Fourth quarter GDP-third estimate, February PCE prices.

🟢 April 10: March CPI, March core CPI, preliminary April University of Michigan Consumer Sentiment.

🟢 April 13: Expected earnings from Goldman Sachs (GS), March existing home sales.

🟢 April 14: March PPI, March core PPI, and expected earnings from JPMorgan Chase (JPM), Johnson & Johnson (JNJ), Wells Fargo (WFC), Citigroup (C), BlackRock (BLK).