US stocks finish mixed as oil climbs 11% on fears of a prolonged Gulf war

U.S. stocks ended Thursday, April 2, in a mixed session as investors weighed fresh developments in the U.S.–Iran conflict. Oil surged on renewed fears that the war could drag on, helping crude prices close at their highest levels in nearly four years.

Stocks finish mixed after volatile trading

At the close, the Dow Jones Industrial Average fell 61.07 points, or 0.13%, to 46,504.67. The S&P 500 rose 0.11% to 6,582.69, while the Nasdaq gained 0.18% to 21,879.18.

All three indexes had dropped sharply at the open amid concerns the Gulf conflict could last longer. Those worries intensified after President Trump, in a Wednesday night speech, said the conflict would end in 2–3 weeks and that U.S. forces could attack Iran “especially hard” during that period to push the country back to the “stone age.” The remarks undercut earlier hopes for de-escalation.

During the day, the selloff extended to intraday lows of more than 600 points for the Dow (about 1.4%), with the S&P 500 down 1.5% and the Nasdaq down around 2.2%. Later, the market staged strong rallies, with all three indices turning green at times.

Hormuz-related headlines support risk appetite

One factor cited for the rebound was Iranian state media reporting cooperation with Oman to reach a memorandum on “monitoring” ships passing through the Hormuz Strait. The market remained range-bound for much of the session, reflecting mixed sentiment about whether Hormuz would reopen soon.

The session’s volatility also showed up in options pricing: the VIX, Wall Street’s fear gauge, rose above 27 at times, compared with its typical range of 12–20.

Commentary on reopening Hormuz and strategic supply

Todd Schoenberger, Chief Investment Officer at CrossCheck Management, said in an interview with CNBC that reopening Hormuz is important to the U.S. not only for crude flows but also for helium flows. He added that helium is “more valuable than foreign oil” because it is used in chip manufacturing and “cannot be replaced.”

Energy prices jump; weekly gains across major indexes

In energy markets, WTI crude for April delivery in New York rose 11.4%, closing at $111.54 per barrel, the highest close for this grade since June 28, 2022. Brent crude rose 7.8% to $109.03 per barrel.

Despite the week’s volatility, all three major U.S. indices posted weekly gains: the S&P 500 rose 3.4%, the Dow gained about 3%, and the Nasdaq increased about 4.4%.

While U.S. financial markets, including gold trading venues, were closed on Friday for Easter, the article noted that investors are reacting to information in real time and that uncertainty remains elevated.

Potential inflation pressure from slower gasoline adjustment

It also said the market is expected to stay elevated for a period, and that even if oil retreats, U.S. gasoline prices may adjust more slowly—implying continued inflation pressures.

Next catalyst: March nonfarm payrolls

Although markets were closed on Easter Friday, the U.S. Labor Department will release the March nonfarm payrolls. The report is described as an important indicator of the health of the world’s largest economy and could significantly affect the Federal Reserve’s rate outlook.