Traders work on the floor of the New York Stock Exchange (NYSE) on April 8, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
of S&P500 Despite falling slightly on Friday, the index was able to post solid gains for the week as traders focused on the uneasy two-week ceasefire between the United States and Iran.
The broader market index fell 0.11% to end at 6,816.89. Nasdaq Composite Supported by the rise in major semiconductor stocks such as It rose 35% to close at 22,902.89. Nvidia and broadcom. of Dow Jones Industrial Average It fell 269.23 points (0.56%) to end at 47,916.57.
Still, the S&P 500 is up about 3.6% this week, and the Nasdaq is up about 4.7% over the same period. Meanwhile, the Dow Jones Industrial Average rose 3% for the week. The index posted its best weekly performance since November.
S&P 500, week to date
President Donald Trump on Friday accused Iran of “using international waterways to short-term rob the world,” saying in a post on Truth Social that the country’s leaders “don’t seem to realize they don’t have the cards” and that “the only reason they’re alive today is to negotiate!”
This comes a day after the president warned that Iran should not charge fees for oil tankers sailing through the Strait of Hormuz, warning in a post on Truth Social: “It’s better not to charge, and if you do, stop now!”
Oil prices have fluctuated as concerns about the reopening of the strait hover in the market. West Texas Intermediate Crude Oil Futures It ultimately fell 1.33% to settle at $96.57 per barrel, the international benchmark. brent crude oil futures It fell 0.75% to settle at $95.20.
Inflation has become a top concern for investors this week as they evaluate a number of important reports, amid concerns that rising energy prices from conflict in the Middle East will spill over into the U.S. economy.
The consumer price index report for March showed that inflation was in line with expectations, at 0.9% for the month and 3.3% for the year. This incorporates a 10.9% increase in energy costs due to the conflict.
However, excluding energy prices, inflation was subdued last month, the report found. Core CPI rose only 0.2% month-on-month, and rose 2.6% year-on-year, which was lower than expected. Inflation remained high at 3% in the run-up to the Iran war, which has been going on for nearly six weeks.
Nevertheless, the war still leads to a spike in inflation concerns. Consumers expect inflation to jump to 4.8% next year, according to a University of Michigan survey released Friday. This is an increase of 1 percentage point over the March reading.
“The Fed is going to do its best to look at whatever data points come out in March and April,” said Tim Holland, chief investment officer at Orion. That assumes “there is an exit between the US, Israel and Iran,” he added.
The Netherlands believes the Iran war will be “over” from here and oil prices will be reset, but warned that investors should be more concerned about the impact on inflation if WTI oil prices have been hovering around $100 a barrel since early to mid-June.
“The combination of already depressed consumer confidence and a real reassessment of inflation expectations creates a potentially toxic cocktail,” he said. “That’s going to be tough for the economy and just puts the Fed in a bit of a pickle.”
