The S&P 500 Index is up 0.97% as of today, with the Dow Jones Industrial Average rising 0.86% and the Nasdaq 100 Index increasing by 1.45%. This rally is fueled by optimism surrounding a potential conclusion to the current conflict in the Middle East; President Trump indicated the war with Iran could end within two to three weeks, as Iran has requested a ceasefire.
Key economic data released today includes a 62,000 increase in March ADP employment, surpassing expectations of 40,000, and a 0.6% rise in February retail sales, also beating forecasts. The ISM manufacturing index unexpectedly rose to 52.7, the highest expansion rate in 3.5 years. However, MBA mortgage applications fell by 10.4%, and the average 30-year fixed mortgage rate hit 6.57%, a 7-month high.
Furthermore, crude oil prices have decreased over 2% amid expectations that the Iran conflict is nearing resolution. The UAE is reportedly preparing to assist in opening the Strait of Hormuz by force if necessary, while the chances of a 25 basis point rate hike by the Federal Open Market Committee at its upcoming meeting stand at just 1%.
