The S&P 500 Index is down 0.21%, while the Dow Jones Industrial Average has fallen by 0.04%, and the Nasdaq 100 Index is down 0.24% as of today. Declining stock indexes coincide with a significant rise in crude oil prices, which have increased by over 5% due to rising tensions between the U.S. and Iran. The U.S. Navy recently boarded an Iranian-flagged cargo ship in the Gulf of Oman, intensifying a blockade affecting the crucial Strait of Hormuz, through which about 20% of the world’s oil transits.
The ceasefire between the U.S. and Iran is set to expire at the end of Tuesday, with uncertainty about any extension. Meanwhile, Q1 earnings for S&P 500 companies show 81% of the 48 firms that have reported thus far have beaten estimates, with projected earnings growth of 12% year-over-year. However, excluding the technology sector, earnings are expected to grow only 3%, the weakest growth in two years.
