The S&P 500 Index is up 1.23% and the Nasdaq 100 Index has risen by 1.30% today, supported by a drop in crude oil prices, which fell more than 3% after several oil tankers navigated the Strait of Hormuz. The U.S. 10-year Treasury note yield decreased to 4.23%, down 5 basis points, following this decline in oil prices.
The ongoing conflict in Iran, now in its seventeenth day, is impacting global oil supply, with the International Energy Agency reporting that approximately 7.5% of global oil supply is disrupted. The closure of the Strait of Hormuz, a key shipping route for a fifth of the world’s oil, is contributing to elevated crude prices, with Goldman Sachs warning they could spike above $150 per barrel if the situation persists. Additionally, U.S. manufacturing production increased by 0.2% in February, exceeding expectations, while the Empire State manufacturing index fell more than anticipated.
Overseas, mixed market responses were observed: the Euro Stoxx 50 rose by 0.51% while China’s Shanghai Composite dropped 0.26%. The mixed economic data from China includes a year-over-year industrial production rise of 6.3%, but a slight increase in the unemployment rate to 5.3% remains a concern.
