Wall Street Flat, Market Weighs Iran Ceasefire Prospects and Hormuz Deadline
US stocks traded modestly on Monday (April 6) after posting their best week since late November, as market participants assessed the chances of a near-term easing of the US-Iran war. The S&P 500 edged up 0.1%, the Nasdaq Composite added 0.3%, while the Dow Jones Industrial Average fell 0.1% amid moderate oil price weakness.
Sentiment was influenced by reports that ceasefire talks were still ongoing, but had not yet changed the uncertainty surrounding energy supply lines. Axios reported that the US, Iran, and regional mediators were discussing a 45-day ceasefire scheme that could pave the way for a permanent settlement, although the chances of reaching a partial agreement before Tuesday's deadline were considered slim. Reuters also reported that the US and Iran had accepted a proposed framework that included an immediate ceasefire and the reopening of the Strait of Hormuz, drafted by Pakistan, with the possibility of taking effect as early as Monday if agreed to.
Markets are still weighing the risk of escalation after President Donald Trump threatened to attack Iranian infrastructure—including power plants and bridges—if Hormuz is not reopened by Tuesday. Trump is scheduled to hold a joint military press conference at 1:00 p.m. local time, which is expected to be a major catalyst for movement in risk assets and energy.
The relatively stable performance at the start of the week follows last week's rally, when the S&P 500 surged 3.4% and broke a five-week losing streak. The Dow rose 3% and the Nasdaq surged 4.4%, also ending a five-week decline. However, volatility over the past week confirms that the market remains highly headline-driven, particularly by the dynamics of the war and the status of Hormuz. Next in focus: diplomatic developments, details of Tuesday's deadline, oil's direction, and the market's response to Trump's press conference.
Source: Newsmaker.id
