Investors are entering a holiday-shortened week that nonetheless features important economic releases and major corporate earnings. Oil markets remain steady as Washington and Tehran prepare for another round of nuclear negotiations in Switzerland. Meanwhile, Warner Bros. Discovery is reportedly reassessing takeover discussions, while gold and Bitcoin are trading lower.
U.S. markets closed to start the week
Wall Street is shut on Monday for a public holiday, but attention will quickly shift to a busy calendar of data and earnings in the days ahead.
On Friday, U.S. equity benchmarks ended mixed. Markets reacted to January inflation data showing price pressures easing more than anticipated, increasing speculation that the Federal Reserve could move up its next rate cut to June. Earlier in the week, however, a strong labor market report had suggested that policymakers — who reduced borrowing costs multiple times in 2025 — might delay further easing until later in the year.
The Nasdaq Composite continued to face headwinds, as investors remain wary of how emerging artificial intelligence models could disrupt the technology and communications sectors. Questions surrounding intensifying competition and the timeline for returns on heavy AI-related capital spending weighed on sentiment across major indices last week.
Focus now turns to Friday’s release of the December personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge. An advance estimate of fourth-quarter U.S. GDP is also due the same day.
Corporate earnings remain a key driver this week, with reports expected from Walmart Inc. (NYSE:WMT), Palo Alto Networks (NASDAQ:PANW), Analog Devices (NASDAQ:ADI) and Booking Holdings (NASDAQ:BKNG).
U.S.–Iran nuclear discussions resume
The United States and Iran are set to meet again in Switzerland for a second round of talks aimed at addressing Tehran’s nuclear program, after dialogue resumed earlier this month.
The renewed negotiations come amid ongoing tensions. Washington has reinforced its military presence in the Middle East and signaled readiness to escalate pressure if diplomacy fails. President Donald Trump has repeatedly warned Tehran that it must agree to a deal or risk further military consequences.
Iranian officials said over the weekend that they are prepared to consider compromises on their nuclear activities in exchange for relief from U.S. sanctions, adding that the next step lies with Washington.
“[T]here is still a large risk premium priced into the market given the uncertainty over how the situation between the U.S. and Iran evolves,” analysts at ING said in a note.
Oil prices were largely steady in European trading, with thin volumes due to market holidays in both China and the United States. Weak economic growth data out of Japan also added to concerns about global demand. Brent crude for April delivery hovered near $67.72 per barrel.
Warner Bros. weighs fresh takeover talks – report
In corporate news, reports suggest new developments in the takeover saga involving Warner Bros. Discovery (NASDAQ:WBD).
Bloomberg reported that Warner Bros. is considering reopening negotiations with Paramount Skydance (NASDAQ:PSKY) after David Ellison’s group enhanced its hostile offer. Board members are reportedly assessing whether Paramount’s proposal could be more attractive than a competing bid from Netflix Inc. (NASDAQ:NFLX).
Last week, Paramount pledged to increase the cash component offered to Warner Bros. shareholders for every quarter that a deal remains unresolved in 2026 and to cover any penalties associated with terminating Warner’s current agreement with Netflix. However, the base offer of $30 per share remains unchanged.
Gold retreats as dollar steadies
Gold prices moved lower in European trading as the U.S. dollar stabilized following recent inflation data. Precious metals have experienced sharp swings over the past two weeks and remain below late-January highs.
Spot gold fell to around $4,998.69 per ounce, while April futures declined to roughly $5,018.69. Although safe-haven demand has been supported by geopolitical tensions, stronger dollar moves have limited gains.
Bitcoin extends its slide
Bitcoin (COIN:BTCUSD) continued to decline, marking a fourth consecutive week of significant losses across the cryptocurrency market.
The digital asset pulled back toward $68,624 after briefly surpassing $70,000 over the weekend. Bitcoin has now lost roughly half its value since reaching a record high near $126,000 in October.
Meanwhile, Strategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin, said it would remain able to meet its debt obligations even if the cryptocurrency fell to $8,000. The company stated on social media that it can “withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt.”
Strategy currently holds 714,644 Bitcoin, financed through a combination of equity issuance and long-term debt.
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