On Thursday, the S&P 500 Index closed up 0.62%, the Dow Jones Industrial Average by 0.58%, and the Nasdaq 100 Index by 0.72%, marking a one-month high for the S&P 500, a five-week high for the Dow, and a four-week high for the Nasdaq. The market’s recovery was influenced by hopes for a sustained US-Iran ceasefire following Israel’s agreement to enter direct negotiations with Lebanon, set to begin next week in Washington.
Despite the gains, stocks were initially pressured by concerns over the durability of the ceasefire and weaker-than-expected US economic data. Notably, initial unemployment claims increased by 16,000 to 219,000, above expectations, while Q4 GDP was revised down to a 0.5% annualized rate and personal income unexpectedly declined by 0.1% month-over-month, the first drop in nine months.
Crude oil prices rose over 3% as the Strait of Hormuz remains largely blocked, with over 800 vessels trapped amid tensions. Current trading indicates only a 2% chance of a 25 basis point interest rate hike by the Federal Reserve at the upcoming April meeting.
