On Tuesday, April 18, 2023, U.S. stock indexes experienced significant gains, with the S&P 500 rising by 1.18%, the Dow Jones Industrial Average increasing by 0.66%, and the Nasdaq 100 climbing 1.81%. The S&P 500 reached a two-month high, driven by optimism regarding ongoing negotiations between the U.S. and Iran for a potential extension of a two-week ceasefire, which is set to expire on April 22.
During the same period, crude oil prices dropped over 7% due to improved market sentiment surrounding the ceasefire. The U.S. military began a blockade of the Strait of Hormuz on April 17, and if tensions escalate, it could affect global oil supplies, as the strait is a critical transit route for a significant portion of the world’s oil and LNG. March PPI data showed a monthly increase of 0.5% and a year-over-year rise of 4.0%, both falling short of expectations.
In corporate news, airline stocks surged following the drop in crude oil prices, aiding profitability, with American Airlines Group up 8%. Meanwhile, Travere Therapeutics shares rose by over 36% after the FDA approved its Filspari medication. Contrastingly, CarMax saw a decline of more than 15% after reporting a Q1 loss.
