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Nasdaq, S&P 500 Fall From Record Highs Amid Iran War Uncertainty; Oil Jumps

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The Nasdaq Composite and the S&P 500 fell from record highs, while oil prices climbed as traders tracked an apparent re-escalation in the Middle East conflict.

The Nasdaq dropped 0.3% to 24,404.4 after a 13-day winning streak that propelled the index to fresh peaks. The S&P 500 declined 0.2% to 7,109.1. The Dow Jones Industrial Average was little changed at 49,442.6.

Six of the 11 sectors were in the green, led by materials, while communication services saw the steepest drop.

West Texas Intermediate crude oil was last up 5.6% at $88.58 per barrel, while Brent advanced 5.1% to $94.98.

Iran took back control of the Strait of Hormuz on Saturday after opening the waterway to commercial vessels on Friday. The US and Iran have accused each other of violating a two-week ceasefire announced April 7.

The US Navy on Sunday seized an Iranian-flagged vessel that tried to move past a naval blockade, President Donald Trump said in a Truth Social post.

"Oil prices are being whipsawed by developments in the Middle East once again, with what appears to be de-escalation quickly turning to re-escalation," ING Bank said in a report.

The US is sending its negotiating team to Pakistan for a second round of peace talks, and while Iran has publicly said it doesn't plan to participate, Bloomberg News reported that Iran will be sending its delegation to Islamabad.

The ceasefire with Iran ends "Wednesday evening Washington time," Trump told Bloomberg News. He said it's "highly unlikely" he would extend the two-week truce.

The US-Iran ceasefire may be extended by up to two weeks, though it will take much longer to hammer out a complete peace agreement, Macquarie Group said in a note on Monday.

US Treasury yields were mixed, with the 10-year rate little changed at 4.26% and the two-year rate rising 1.7 basis point to 3.73%.

Some 46 S&P 500 companies have so far reported their latest quarterly financial results in the current cycle, with earnings and sales up around 32% and 13% year over year, respectively, Oppenheimer Asset Management said in a report. Ahead of the reporting season, FactSet put expected earnings growth at 12.6% from a year earlier, according to the brokerage.

"It's too early to draw conclusions about first-quarter results, but the quarter appears to be off to a good start," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said.

About 94 S&P 500 companies are scheduled to release their quarterly financials this week, according the brokerage. Those include Tesla (TSLA), Intel (INTC), IBM (IBM), Texas Instruments (TXN), Philip Morris International (PM), Procter & Gamble (PG), GE Aerospace (GE), UnitedHealth Group (UNH), and RTX (RTX).

In company news, QXO (QXO) has agreed to acquire insulation products company TopBuild (BLD) in a cash-and-stock deal worth roughly $17 billion, the companies said Sunday. QXO shares fell 3.1%, while TopBuild surged 19%.

Sila Realty Trust (SILA) agreed to be acquired and taken private by certain affiliates of Blue Owl Capital's (OWL) real estate unit in an all-cash deal worth roughly $2.4 billion. Sila Realty shares jumped 19%, while Blue Owl rose 0.4%.

Gold was last down 1% at $4,832.10 per troy ounce, while silver dropped 2.5% to $79.81 per ounce.

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US Markets

Nasdaq, S&P 500 Hit New Peaks as Iran Reopens Hormuz

The Nasdaq Composite and the S&P 500 notched new peaks on Friday after Iran announced a temporary reopening of the Strait of Hormuz, sending oil prices tumbling.The Nasdaq rose 1.5% to 24,468.5, while the S&P 500 added 1.2% to 7,126.1, notching record-high closing levels for the third straight day. The Nasdaq extended its advance to a 13th consecutive session, its longest winning streak since 1992, according to CNBC.The Dow Jones Industrial Average jumped 1.8% to 49,447.9.Barring energy and utilities, all sectors were in the green, led by consumer discretionary's 2% jump.The Nasdaq and the S&P 500 saw their biggest weekly gains since May last year, rising 6.8% and 4.5%, respectively, this week. The Dow advanced 3.2% this week, the most since June.West Texas Intermediate crude oil sank 11% to $84.68 a barrel in Friday late-afternoon trade, while Brent lost 8.7% to $90.71."In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Iranian Foreign Minister Seyed Abbas Araghchi said Friday in a post on the X platform.Vessels must move through a "coordinated route" announced by Iran's Ports and Maritime Organization, Araghchi said.On Thursday, US President Donald Trump said Lebanon and Israel agreed to a 10-day ceasefire that seeks to pause hostilities between Israel and Iran-backed Hezbollah in Lebanon. That was a key sticking point in peace negotiations between the US and Iran."Araghchi's statement represents a significant and unexpected diplomatic opening," Artem Abramov, deputy head of analysis at Rystad Energy, said in a note e-mailed to. "The Strait of Hormuz has been the single most consequential variable in global oil markets since the conflict escalated, and any credible signal that the chokepoint may reopen, even temporarily, is a market-moving development of the first order."Trump welcomed the reopening of the strait, though he said the US naval blockade of Iran's ports will continue until "our transaction with Iran is 100% complete.""The news that Iran will allow traffic to resume through the Strait of Hormuz could be an important turning point and the catalyst for upgrades to our economic forecasts, but not immediately," Oxford Economics said in a note. "The development increases the risk that a more lasting deal could be brokered, reducing the likelihood of extreme downside scenarios crystalizing."Shares of cruise line operators and airlines jumped, with Royal Caribbean Cruises (RCL) up 7.3%, the best performer on the S&P 500, followed United Airlines (UAL) and Carnival (CCL). Southwest Airlines (LUV) rose 5.1%.US Treasury yields were lower, with the 10-year rate down seven basis points at 4.25% and the two-year rate dropping 7.4 basis point to 3.71%.In company news, Netflix (NFLX) shares tumbled 9.7%, the third-worst performer on the S&P 500.The streaming giant late Thursday posted first-quarter revenue above Wall Street's estimates. However, the company disappointed investors by maintaining its margin outlook even though its cost base apparently would have benefited from its decision to walk away from a deal to acquire Warner Bros. Discovery (WBD), MoffettNathanson said in a note Friday.Gold was last up 1.3% at $4,871.10 per troy ounce, while silver gained 3.4% to $81.40 per ounce.

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US Markets

Industrial Demand Holds Strong Despite Iran War, Truist Securities Says

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US Markets

Equities Rally Intraday, Oil Plunges After Iran Declares Hormuz Strait Open

US benchmark equity indexes advanced intraday, while oil prices slumped after Iran declared the Strait of Hormuz "completely open" following a ceasefire deal between Lebanon and Israel.The Dow Jones Industrial Average was up 1.9% at 49,507.9 after midday Friday. The Nasdaq Composite jumped 1.4% to 24,447.8, while the S&P 500 rose 1.2% to 7,126.6. The two indexes notched their second consecutive record-high closes in the previous session.Barring energy and utilities, all sectors were in the green intraday Friday, led by consumer discretionary's 2.7% jump.West Texas Intermediate crude oil sank 11% to $84.20 a barrel, while Brent lost 9% to $90.44."In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Iranian Foreign Minister Seyed Abbas Araghchi said Friday in a post on the X platform.Vessels must move through a "coordinated route" announced by Iran's Ports and Maritime Organization, Araghchi said.On Thursday, US President Donald Trump said Lebanon and Israel agreed to a 10-day ceasefire that seeks to pause hostilities between Israel and Iran-backed Hezbollah in Lebanon. That was a key sticking point in peace negotiations between the US and Iran.Trump welcomed the reopening of the strait, though he said on Truth Social that the US naval blockade of Iran's ports will continue until "our transaction with Iran is 100% complete.""The news that Iran will allow traffic to resume through the Strait of Hormuz could be an important turning point and the catalyst for upgrades to our economic forecasts, but not immediately," Oxford Economics said in a note. "The development increases the risk that a more lasting deal could be brokered, reducing the likelihood of extreme downside scenarios crystalizing."A quarter-long closure of the strait will likely push US inflation higher by 0.6 percentage point this year, researchers at the Federal Reserve Bank of Dallas said in an article Friday.Shares of cruise line operators and airlines surged intraday, with Royal Caribbean Cruises (RCL) up 8.2%, the best performer on the S&P 500, followed by Carnival's (CCL) 7.8% gain. United Airlines (UAL) jumped 7.6%, while Southwest Airlines (LUV) climbed 6.5%, among the top gainers on the index.US Treasury yields were lower intraday, with the 10-year rate down 6.3 basis points at 4.25% and the two-year rate dropping 7.8 basis point to 3.69%.In company news, Netflix (NFLX) shares were down 10% intraday, the second-worst performer on the S&P 500.The streaming giant late Thursday posted first-quarter revenue above Wall Street's estimates. However, the company disappointed investors by maintaining its margin outlook even though its cost base apparently would have benefited from its decision to walk away from a deal to acquire Warner Bros. Discovery (WBD), MoffettNathanson said in a note Friday.Gold was up 1.5% at $4,881.40 per troy ounce, while silver gained 3.8% to $81.71 per ounce.

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