On April 8, 2026, U.S. stock indexes surged, with the S&P 500 rising 2.35%, the Dow Jones Industrial Average up 2.78%, and the Nasdaq 100 gaining 2.89%, marking four-week highs across all three indices. The rally was fueled by a newly agreed two-week ceasefire between the U.S. and Iran, which also included Iran’s commitment to reopen the Strait of Hormuz. Consequently, crude oil prices plummeted over 17% to reach a 1.5-week low, helping ease inflation anxieties and leading to declines in government bond yields.
As tensions de-escalated, more than 800 vessels remained trapped in the Persian Gulf, with over 1,000 waiting to transit the Strait before the ceasefire. The average daily volume of ships transiting this strategic waterway pre-war was approximately 135. Additionally, U.S. mortgage applications fell by 0.8% for the week ending April 3, highlighting ongoing economic challenges.
Overseas, European and Asian stock markets reflected the positive sentiment, with the Euro Stoxx 50 gaining 5.31%, the Shanghai Composite climbing 2.69%, and Japan’s Nikkei rising 5.39%. Notable movers included Alaska Air Group, which surged over 16%, as lower fuel costs from declining oil prices bolstered airline stocks.
