Stocks Open Week on Downside, Look to Rebound Tuesday as "Project Freedom" Seeks to Free Up Strait of Hormuz to Commercial Traffic

Stocks opened the trading week with a bit of a pullback, especially on the Dow Industrials, which was down more than one percent at the end of the day. That drop isn't likely to matter much, as Tuesday's open approaches with tensions escalating in the Middle East.

According to CENTCOM, two U.S. Navy destroyers have transited the Strait of Hormuz, allegedly suppressing a sustained assault by Iranian fast boats, missiles, and drones in the first true test of "Project Freedom", by which the U.S. plans to escort commercial ships through the strait into open, friendlier waters.

Initial reports being positive, stock futures are responding to the headlines. Dow futures are up 220 points, NASDAQ futures are ahead by 213, and S&P futures show a positive gain of 35 points a half hour before the opening bell.

On Monday, yield on the 30-year bond crept up to 5.05%, a danger signal to U.S. interests. Rising yields on the longest-duration treasuries is something the Trump administration would rather not contend with, as higher yields suggest insecurity in lending the to the U.S., already more than $38 trillion in debt.

Tuesday morning, yields on the 30-year are declining, close to an even 5.00%, but the danger still exists. Ten-year notes are yielding roughly 4.42%, though they came closer to the Mendoza line at 4.50% on Monday.

As far as "Project Freedom" is concerned, so far, so good, as CBS news is confirming the transit of Hormuz by the two Navy ships. Whether on not CBS reporting constitutes actual confirmation is questionable, as the network is usually little more than a stenographer for the federal government and military.

On the earnings front, reporting first quarter results Tuesday before the open:
Pfizer (PFE) - earnings beat, reaffirms guidance, stock up less than 1% in pre-market
PayPal (PYPL) - reports higher earnings and revenue, stock slides 9.5%
Marathon (MPC) - big beat on revenue, earnings, shares marginally higher
Shopify (SHOP) - revenue gains, profits slim, shares down 7%

Gold and silver are ripping higher as the U.S. cash open approaches, though both are well off last year's all-time highs. Bitcoin has streaked beyond $81,000, also well below 2025 highs of $124,000.

The oil must flow, WTI crude down $3 to $103 and change.

At the Close, Monday, May 4, 2026:
Dow: 48,941.90, -557.37 (-1.13%)
NASDAQ: 25,067.80, -46.64 (-0.19%)
S&P 500: 7,200.75, -29.37 (-0.41%)
NYSE Composite: 22,893.46, -147.68 (-0.64%)