US equity markets opened the week on edge Monday as Brent crude's surge above $120 per barrel, driven by the Strait of Hormuz standoff, collided with the first significant week of Q1 2026 earnings reports, creating a volatile backdrop that analysts warned could define the market's trajectory for the rest of the spring.
The S&P 500 fell 1.4 percent in early trading before recovering most of those losses as buyers emerged in defensive sectors. The CBOE Volatility Index rose to 28, its highest intraday level since January, reflecting elevated uncertainty about how the geopolitical situation will resolve.
JPMorgan Chase kicks off the formal earnings season Tuesday morning. Analysts consensus projects the bank will report net interest income of $23.1 billion, with attention focusing heavily on commentary from CEO Jamie Dimon about credit quality and loan demand.
"Dimon's tone matters as much as the numbers," said Liz Ann Sonders, chief investment strategist at Charles Schwab. "He has been consistently ahead of the curve in flagging when conditions are deteriorating."
Energy companies are expected to be the earnings season's standout performers, with refiners and integrated majors like ExxonMobil and Chevron benefiting from both higher crude prices and strong refining margins.