(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

April 30 (Reuters) - What matters in U.S. and global

markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

Try as they might, it's impossible for markets to ignore the

renewed surge in oil prices on the Iran war stasis. Global crude

prices surged to their highest level since the war began amid

reports that Washington was considering a resumption of military

action to break the deadlock.

On the last day of the June Brent futures contract, the price

hit four-year highs of around $126 per barrel, while the new

July benchmark surged to almost $115/bbl before easing back. The

fuel price squeeze was the backdrop for the Fed's distinctly

hawkish hold on Wednesday.

I'll get into that and more below.

But first, check out my latest column on the signs that U.S.

inflation is heading higher.

And listen to the latest episode of the Morning Bid daily

podcast. Subscribe to hear Reuters journalists discuss the

biggest news in markets and finance seven days a week.

OIL FEAR SHROUDS TECH SPLURGE

The Fed left rates unchanged on Wednesday, but three regional

presidents voted to remove references to an "easing bias" in the

central bank statement. Outgoing Chair Jerome Powell also

surprised many by saying he'd stay on as a board member - at

least for a time - after his chairmanship ends next month.

Powell's term on the board will last until early 2028,

meaning there will be no immediate vacancy on the board for

President Trump to fill.

Futures markets have wiped out all bets on Fed easing this year,

with a one-in-three chance of a rate hike by next April.

Treasury yields are climbing again, with the 30-year yield

briefly topping 5% for the first time since September. The

dollar jumped briefly, but was knocked back below 160 yen by

Japanese intervention worries.

The European Central Bank and Bank of England will issue

their rate decisions today. Like the Fed and Bank of Japan,

they're both expected to keep policy on hold but warn of

oil-related inflationary pressure.

Meantime, the mega-cap earnings season swept in after

Wednesday's bell. Alphabet surged more than 6% on its beat and

impressive cloud business, while Meta went the other way,

dropping more than 6% as investors fretted about its latest

capex boost.

The share price reactions to Amazon and Microsoft's results were

more subdued, but overall, there was no major red or green flag

on the gigantic AI buildout. Spending from the so-called

hyperscalers this year is now expected to top $700 billion

overall.

Whether that high and rising bill is justified or not

remains to be seen, but it means the underlying demand for AI

chips and equipment will go up another gear for now while the

end game for the massive capex continues to be assessed.

Finally, Asian shares fell on oil's renewed surge on Thursday,

while European shares opened lower and Wall Street futures were

mixed before the bell.

Chart of the day

South Korean tech giant Samsung Electronics reported record

quarterly profit driven by a 49-fold jump in chip income, saying

it expects a severe supply shortage to deepen next year as

clients spend on AI. The results come a day after updates from

U.S. mega-caps Microsoft, Alphabet, Amazon and Meta indicated

that 2026 capex plans now top $700 billion.

Today's events to watch

* U.S. March PCE inflation data (8:30 a.m. EDT), weekly

jobless claims (8:30 a.m. EDT)

* U.S. corporate earnings: Apple

* Bank of England rate decision (7 a.m. EDT) and European

Central Bank rate decision (8:15 a.m. EDT)

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Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.