The US stock market experienced wide swings associated with economic and geopolitical factors, including tensions between the United States and Iran.
Market Performance Overview
Following a week of volatility, major indexes finished the week higher as market participants responded to potential peace talks and the possibility of the Strait of Hormuz reopening.
- S&P 500: Ended the week with a rally, gaining 0.6% on Thursday to close at 6,824.66. The index recovered from early-week declines after Israel authorized direct negotiations with Lebanon.
- Dow Jones Industrial Average: Gained 275.88 points (0.6%) to finish at 48,185.80.
- Nasdaq Composite: Led gains among major benchmarks, climbing 0.8% and finishing at 22,822.42.
CBOE VIX Activity
|
Date |
VIX |
Change |
Market Context |
|---|---|---|---|
|
April 6 |
24.17 |
+1.26% |
Tentative trading ahead of US bombing deadlines. |
|
April 7 |
25.78 |
+6.66% |
Peak anxiety amid oil price surges. |
|
April 8 |
21.04 |
-18.39% |
Sharp drop following the announcement of a two-week ceasefire. |
|
April 9 |
19.49 |
-7.37% |
Volatility compressed. |
|
April 10 |
19.23 |
-1.33% |
Stabilized near 19.5 ahead of March CPI data. |
Economic and Geopolitical Factors
- The Iran Ceasefire: The primary catalyst for the mid-week reversal was the two-week ceasefire and the reopening of the Strait of Hormuz. Crude oil prices, which briefly surged past $100/barrel, settled near $97.87 by Thursday.
- Inflation Concerns: On Friday, April 10, the market's focus shifted to the March CPI report, a 3.3% year-over-year increase, the largest since 2024, largely due to the recent energy price shocks.
