Skip to playerSkip to main content
  • 5 hours ago
U.S. shares ended slightly mixed after diplomatic moves involving Iran, Oman and Britain calmed fears over oil supply disruption, following early losses sparked by rising crude prices and geopolitical tensions.
Transcript
00:00U.S. stocks ended slightly mixed on Thursday, April 2, after purring deeper losses as diplomatic signals from the Middle
00:06East helped calm markets rattle earlier by U.S. President Donald Trump's threats of tougher actions against Iran ahead of
00:14a long holiday weekend.
00:15Investor sentiment steadied in the afternoon after Iran's foreign ministry said it was drafting a protocol with Oman to manage
00:22traffic through the Strait of Hormuz, and Britain said dozens of countries were discussing ways to end the crisis, easing
00:29worries about prolonged disruption to global oil flows.
00:34Stocks had opened lower amid rising oil prices after U.S. President Donald Trump signaled more aggressive attacks ahead of
00:41the Good Friday holiday when markets will be closed.
00:43Front month crude prices surged with U.S. crude up 11% at around $111 a barrel.
00:50The international reference brand closed up about 7% near $108, but traders' price date at about $82 per barrel
00:59in October, a signal that they expect the disruption to be temporary.
01:05The big thing is the markets are clearly reacting to, you know, the President's speech last night.
01:09I think a lot of market participants were expecting kind of an off-ramp, and that's not what they got,
01:15obviously.
01:16And, you know, this is just, this is a reaction to that.
01:19I mean, to see oil up 10% in a day, I think it's, you know, close to unprecedented.
01:25And so, you know, this is kind of back and forth with, you know, headline trading, especially around the war
01:31in Iran, you know, what the resolution looks like.
01:33But the reality is, is the market is saying, listen, higher oil equals higher interest rates, which equals higher inflation,
01:39and that can't go on forever.
01:41I mean, that's, at some point, there has to be an off-ramp, and, you know, everybody's looking for it.
01:46So, the market's just digesting, you know, what they didn't hear last night.
01:51The S&P 500 gained 7.37 points, or 0.11%, to end at 6,582.69 points, while the
02:00Nasdaq Composite gained 38.23 points, or 0.18%, to 21,879.18.
02:07The Dow Jones Industrial Average fell 61.07 points, or 0.13%, to 46,504.67.
Comments

Recommended