U.S. stocks fell Tuesday as investors awaited developments in the Middle East and positioned ahead of first-quarter 2026 earnings season, which begins Wednesday with results from Delta Air Lines (NYSE:DAL).
The Strait of Hormuz remains largely closed to oil tankers, significantly curbing global oil availability and raising concerns about supply chain shortages in coming months, according to Goldman Sachs. WTI oil prices have spiked, prompting investors to consider implications for inflation and U.S. growth.
Goldman Sachs analyst Richard Ramsden sees room for banks to increase net income growth in first-quarter results as markets price out Federal Reserve rate cuts and loan growth remains strong. The firm recommends buying Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC). Hedge funds are de-risking, which could negatively impact capital markets activity for select banks later this year.
