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Cease-Fire · Geopolitics · Oil · Stocks
Wall Street's three major U.S. stock indexes closed higher for a second consecutive day, with the S&P 500 achieving a seven-session winning streak, as investor optimism regarding a U.S.-Iran cease-fire and direct talks between Israel and Lebanon outweighed initial concerns about the Strait of Hormuz.
Stocks initially wobbled on April 9th (local time) due to reports of snags in reopening the Strait of Hormuz, a condition of the U.S.-Iran cease-fire, and Iran's stated cap of 15 ships per day transiting the strait. However, sentiment reversed in the afternoon after Israel announced it would enter direct talks with the Lebanese government, easing fears about the Lebanon front.
U.S. President Donald Trump further bolstered optimism, stating in an NBC interview that "Iranian leaders are much more reasonable at the negotiating table" and that "the end-of-war talks are very optimistic." The Dow Jones Industrial Average finished up 0.58% at 48,185.80, the S&P 500 rose 0.62% to 6,824.66, and the Nasdaq climbed 0.83% to 22,822.42. International oil prices also closed higher, with Brent crude settling at $95.92 per barrel (up 1.23%) and West Texas Intermediate (WTI) up 3.66% at $97.87.
Despite the gains, the market remains split, with Oliver Pursche of Wealthspire Advisors advising investors to choose between trust or cash, and Rick Wedell of RFG Advisory warning that persistent supply shocks could occur if the Strait of Hormuz issue prolongs.
