After weeks of selloffs, the stock market finally received some great news. All major assets rallied significantly over the course of this four-day trading week as global investors leaned toward the possibility of a swift reopening of the Strait of Hormuz following comments from President Trump, who has repeatedly said that the conflict will come to a swift end.
After a tremendous rally on Tuesday, the stock market kept moving higher until the President’s official address to Iran last night, during which fresh threats against Iranian infrastructure were made in fairly bombastic language.
Despite the hawkish tone, stocks ended the week higher. The Dow posted a gain of nearly 3%, while the S&P 500 and NASDAQ rose even more, with the NASDAQ approaching 4%. All major sectors other than energy ended the week higher, especially technology, communication services, and real estate, each posting returns of more than 4% in a single week.
The bond market also rallied, as the five-year U.S. Treasury yield dropped 12 basis points to 3.95% and the 10-year yield fell 13 basis points to 4.31%. However, yields are still much higher than their pre-military-operation levels, showcasing continued concerns about inflation. Nevertheless, the lower yields were enough to boost gold prices by nearly 4% to the 4,700 mark.
Brent crude oil briefly dipped below $100 per barrel on Wednesday but has since risen back to near $110, demonstrating continued volatility in the energy market.
There were a number of positive surprises in the economic data released this week, showcasing the continued resilience of the U.S. economy.
Tomorrow is Good Friday, a stock market holiday. We will therefore cover tomorrow’s jobs report on Monday. This is Adams Wealth Advisor, and we wish you an amazing weekend.