U.S. stock markets showed mixed results today as the S&P 500 Index rose by 0.05%, while the Dow Jones Industrial Average fell by 0.39% and the Nasdaq 100 Index increased by 0.21%. This follows President Trump’s announcement of a naval blockade of the Strait of Hormuz due to stalled peace talks with Iran. Crude oil prices surged by over 5% as the U.S. threatened to restrict shipping to and from Iranian ports, amid concerns that this could exacerbate global oil shortages.
WTI crude oil traded up more than 7%, with about 20% of the world’s oil and liquefied natural gas transported through the Strait. Iran, facing pressure, indicated it would target ports in the Persian Gulf if its shipping was threatened, having exported approximately 1.7 million barrels per day in March. The impacts on the market included declines for airline and cruise line stocks, with American Airlines and Carnival both dropping over 3%.
In financial updates, Q1 S&P 500 earnings are projected to rise by 12% year-over-year, according to Bloomberg Intelligence. Earnings reports are set to begin this week, with a 2% likelihood of a Federal Reserve interest rate hike at the upcoming April meeting.
