🚀 Iran threatens tech companies

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Market Overview
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Year To Date Performances:

1. Iran’s Revolutionary Guard has issued a chilling ultimatum to 18 major U.S. and international tech giants, designating their Middle East operations as "legitimate targets". The list includes industry leaders such as Nvidia, Apple, Microsoft, Google, and Tesla, with the Guard framing the move as direct retaliation for recent U.S. and Israeli assassinations and military strikes. This escalation follows earlier attacks on Amazon Web Services (AWS) data centers in the region and threatens the massive AI infrastructure investments that companies like Intel and G42 have funnelled into the Middle East for its cheap energy and land. While President Donald Trump has recently signalled a desire to wind down the conflict within weeks, this specific targeting of private sector assets—and the warning for employees to evacuate—adds a volatile new dimension to a war that has already seen over 3,000 missiles and drones fired across the Gulf.

2. President Donald Trump has confirmed that Iran's president has requested a ceasefire, though he maintains that the United States will only consider the offer once the Strait of Hormuz is "open, free, and clear." In a characteristically blunt Truth Social post ahead of a scheduled national address, Trump reiterated that military operations—which he claims have already "obliterated" Iran's defences—will continue until the vital oil transit point is reopened. The potential for a diplomatic breakthrough remains clouded by internal Iranian power dynamics, as ultimate authority rests with Supreme Leader Mojtaba Khamenei rather than the presidency, and the two nations have frequently issued conflicting reports regarding peace negotiations since the conflict began on February 28. As the war enters its second month, the global economy remains tethered to the Strait's status quo, with the U.S. administration balancing aggressive rhetoric with the urgent need to stabilize fluctuating global energy prices.

3. Private sector employment grew by 62,000 in March, according to ADP data, defying a more pessimistic Dow Jones consensus of 39,000 and signalling unexpected resilience in a war-strained economy. The gains were heavily concentrated in two sectors, with education and health services contributing 58,000 jobs and construction adding 30,000, effectively offsetting significant losses of 58,000 in trade, transportation, and utilities. Small businesses led the charge by adding 85,000 positions—a trend ADP Chief Economist Nela Richardson attributes to firms "playing catch-up" and workers seeking additional income to combat persistent inflation. While wage growth for job-stayers remained steady at 4.5%, the report highlights a bifurcated labour market, with large firms shedding staff even as essential services and small-scale hiring provide a critical buffer ahead of the official government payrolls report.

   Headlines

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