Market Report, 2026-05-04

After a fresh week of finally being able to focus our attention elsewhere, Iran has once again grabbed the headlines as the geopolitical situation intensified. A new initiative called “Project Freedom,” aimed at guiding stranded ships out of the Strait of Hormuz, was announced on Sunday in a post on Truth Social. In response, Iran warned that it would use force if American ships were to sail into the strait. Reportedly, shots have been fired, and both sides have claimed success while denying the other’s account. Unfortunately, verifying the actual events remains a difficult task for news agencies.

The market did not respond well to the news and retreated across nearly all major asset classes. Stocks ended the day moderately lower. The Dow Jones Industrial Average fell 557 points to 48,942. The NASDAQ lost only 0.21%, closing at 27,652, thanks to its heavy exposure to technology, which was the only sector outside of energy to post gains today. The S&P 500 declined 0.41% to 7,201.

The Treasury market also reacted sharply as inflation concerns reemerged. Both the U.S. 5-year and 10-year benchmark yields rose by 6 basis points to 4.08% and 4.44%, respectively. Gold followed suit, slumping to nearly the 4,500 mark.

Today’s economic data showed a significant uptick in factory orders, likely supported by the ongoing AI investment boom as well as increased military spending.

Service sector surveys will be released tomorrow, along with employment and real estate-related data. The U.S. trade balance for March will also be published. As the world navigates these volatile circumstances, Adams Wealth Advisors will keep you informed