Stocks Stage Cautious Advance as Iran War Drags On: Markets Wrap
(Bloomberg) — Wall Street staged a cautious advance, with stocks rising after oil eased from session highs, but crude remained above levels that could stoke concerns about inflation as the war in Iran shows no signs of abating.
The S&P 500 trimmed most of its earlier gain as US oil climbed to around $95. Airlines jumped after some executives cited strong bookings as travelers rush to lock in fares ahead of a potential rise in fuel costs. Qualcomm Inc. rose on plans to buy back $20 billion in shares and boost its dividend. Bond yields fell on the eve of the Federal Reserve decision.
TRUMP: SOON AS WAR’S OVER, OIL PRICES WILL DROP LIKE A ROCK
President Donald Trump lashed out against longtime allies, many of which have rejected his appeals for help in the Iran War effort, as the closure of the vital Strait of Hormuz continued to wreak havoc on global energy markets.
“Because of the fact that we have had such Military Success, we no longer ‘need,’ or desire, the NATO Countries’ assistance — WE NEVER DID!” Trump said in a social-media post.
Regarding the war in Iran, Trump told reporters at the White House that “we’re not ready to leave yet, but we will be leaving in the near future.”
“Markets aren’t getting carried away,” said Fawad Razaqzada at Forex.com. “Efforts by the US to build a coalition to secure the Strait have so far met a lukewarm response from allies, suggesting traders aren’t fully buying into a smooth resolution just yet.”
Israel said it killed Iran’s security chief, Ali Larijani, in an overnight strike. The development came after Iran set a massive natural gas field in the United Arab Emirates ablaze overnight as it steps up attacks on key energy sites.
The stock market is trying to find a bottom amid this geopolitical-driven pullback, according to Rick Gardner at RGA Investments. While he says the conflict could go on for some time, that doesn’t mean the stock market would follow suit.
“Stocks tend to move ahead of various events, like wars, well before they are over,” Gardner noted. “Valuations in stocks remain attractive, creating a potentially attractive entry point for investors looking to put new money to work.”
The war in Iran and private credit concerns ended the “frothy bull” market sentiment of recent months, according to Bank of America Corp.’s latest fund manager survey.
BofA’s Michael Hartnett said growth optimism tanked and cash levels surged, with investors bearish enough to sell oil above $100 per barrel and buy the S&P 500 at 6,600. The equity benchmark fell below that level last week before rebounding. Still, positioning is “far from uber-bear levels seen at recent big lows,” he said.
With Fed officials widely expected to hold interest rates steady on Wednesday, attention shifts to how they may respond if the fallout from war in the Middle East pulls their policy goals in opposite directions.
“Risk assets like US stocks and cryptocurrencies have held up surprisingly well despite all the turmoil,” said Bret Kenwell at eToro. “Depending on whether the Fed strikes a more dovish or hawkish tone, that could shape the near-term direction for both into quarter-end.”
Still, with so much uncertainty and so many mixed signals in play, the Fed may be more inclined to stay the course than shake things up, he added.
Corporate Highlights:
Boeing Co. signaled that several performance issues will weigh on its first quarter results, from fewer-than-planned deliveries of its widebody aircraft and wiring defects on the 737 MAX to the cost to turn around its reintegrated supplier, Spirit AeroSystems Holdings Inc. International Business Machines Corp. Chief Executive Officer Arvind Krishna expects the company to pursue more deals in AI, helped by less regulatory pushback. Artificial intelligence data center developer Nebius Group NV said it intends to raise about $3.75 billion in convertible debt on the heels of a commercial deal with Meta Platforms Inc. Mastercard Inc. said it will acquire the stablecoin infrastructure startup BVNK for as much as $1.8 billion, four months after negotiations between BVNK and Coinbase Global Inc. for a roughly $2 billion deal fell apart. Eli Lilly & Co. dipped after HSBC turned bearish on the stock, saying investor expectations for weight-loss drugs are over inflated. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.4% as of 1:10 p.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average rose 0.4% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1532 The British pound rose 0.2% to $1.3350 The Japanese yen was little changed at 158.94 per dollar Cryptocurrencies
Bitcoin fell 0.2% to $74,102.04 Ether fell 0.9% to $2,324.2 Bonds
The yield on 10-year Treasuries declined three basis points to 4.19% Germany’s 10-year yield declined five basis points to 2.91% Britain’s 10-year yield declined eight basis points to 4.69% Commodities
West Texas Intermediate crude rose 2.3% to $95.63 a barrel Spot gold was little changed ©2026 Bloomberg L.P.
