5-Week Slide Ends for Stock Market
Stocks are up Monday for the most part after a strong end to last week that snapped a 5-week downward streak.
Quick overview
- U.S. stock futures rose slightly after a five-week losing streak, driven by potential ceasefire discussions between Iran and the U.S.
- The Dow Jones Industrial Average fell 0.1%, while the Nasdaq and S&P 500 gained 0.3% and 0.1%, respectively.
- President Trump is set to address the military situation in Iran, which could impact market stability depending on the news.
- The March jobs report indicated a 4.3% unemployment rate and an increase of nearly 180,000 payrolls, influencing market reactions.
On Monday, U.S. stock futures climbed marginally higher after ending a 5-week losing streak on Thursday thanks to reports that a ceasefire may be in the works between Iran and the United States.
The Dow Jones Industrial Average was the only one of the three leading U.S. stock indices to fall on Monday, losing 0.1%. The Nasdaq added 0.3%, and the S&P 500 gained 0.1%. These mild changes are coming off of a strong performance at the end of last week when all three indices snapped a losing streak that had extended for five weeks.
Iran and the United States are discussing a ceasefire, and the deadline has been set for Tuesday this week. The terms of the ceasefire would ensure a 45-day break from fighting so that plans can be made to end the conflict permanently. The terms also allow for the reopening of the Strait of Hormuz- an event much anticipated by the stock market, which has been drastically impacted by destroyed and restricted shipments through there.
Stocks Jump but Could Reverse on Trump Speech
President Donald Trump is scheduled to give a speech today at 1pm on the military situation in Iran, and if he reveals news that the ceasefire is not going as planned, then the stock market is likely to reverse course. The indices are still high from last week’s wins, where the Dow added 3% and the Nasdaq gained 4.4%. Those gains came after days of volatile movements in both directions.
Investors should note that the stock market is still incredibly volatile and prone to quick decreases at any bad news coming out about the Iran conflict. Protracted conflict can hurt the U.S. economy, especially in relation to the global foothold the country has on the price of goods when compared to China. The Asian superpower stands to benefit from the United States’ involvement in Iran as economic pressure is placed on the price of foodstuffs and other items.
Trump has already warned that if Iran does not meet the requirements for opening the Strait of Hormuz by Tuesday, then the United States will attack bridges and power plants. That could drastically extend the fighting and increase oil prices further. The price of crude oil fell about 1% Monday but is still elevated.
The other big news Monday besides the Iran conflict is the March jobs report. That released Friday, but with the shortened holiday week, the market will only now be able to react to the news. That report showed that unemployment stood at 4.3% and payrolls increased by nearly 180,000 for the month.
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