.png){kind=logo}
US stocks turned mixed on Monday as investors weighed the start of a US naval blockade tied to the Strait of Hormuz and the early batch of corporate earnings. Oil prices climbed above $100 a barrel, while bond yields held near recent levels. At the same time, traders tracked whether the latest Middle East tensions would keep pressure on inflation, fuel costs, and risk assets.
US equities recovered from early pressure and pared most of the session’s losses. The S&P 500 edged higher by about 0.1% in late morning trading, while the NASDAQ 100 was little changed and the Dow Jones Industrial Average fell 0.4%. The MSCI World Index also held near flat levels.
Market action remained restrained even as the US naval blockade took effect on Monday. Investors focused on whether the move would disrupt energy flows further after weekend peace talks between the US and Iran ended without a deal. Clark Bellin of Bellwether Wealth said, “Investors are now back to the drawing board, trying to reassess the fair value of stocks now that it’s clear that there is no end in sight to the conflict in the Middle East.”
The reaction in equities suggested that traders were not pricing in a full market shock at this stage. Still, the recent swings in stocks showed that geopolitical headlines continued to shape daily trading. Technology and energy shares helped limit broader losses, while defensive groups such as consumer staples and utilities lagged.
Crude prices moved sharply higher as the blockade raised new concerns around one of the world’s most important shipping routes. West Texas Intermediate rose 5.3% to $101.72 a barrel, while Brent traded near $101 to $102 during the session. The move came as shipping traffic through the strait remained far below pre-war levels.
The latest energy surge kept inflation concerns in focus. In the bond market, the yield on 10-year Treasuries held near 4.32%, while Britain’s 10-year yield rose to 4.86% and Germany’s 10-year yield advanced to 3.08%. In Japan, the 10-year yield earlier touched its highest level since 1997 before easing back.
Fuel costs also reflected the pressure from rising oil prices. US average gasoline prices stood at $4.15 a gallon on April 10, up 61 cents from a month earlier and 93 cents from a year ago. Money markets also trimmed expectations for easing, with traders pricing less than a one-in-five chance of a Federal Reserve rate cut by December.
The start of earnings season added another layer to trading. Goldman Sachs shares fell about 3% after weaker fixed-income, currency, and commodities revenue offset record equities trading. The stock ranked among the weaker performers in the S&P 500 during the session.
Analysts still expect solid earnings growth for the broader market. Estimates point to about 12% annual growth in first-quarter S&P 500 earnings. Morgan Stanley strategist Mike Wilson said a firm earnings backdrop was helping shield the index from deeper losses, even as geopolitical stress continued.
Outside the US, Europe also reacted to political and macro developments. The Stoxx Europe 600 fell 0.3%, while Hungary’s forint climbed to a four-year high after Prime Minister Viktor Orban lost Sunday’s election. Local stocks in Hungary also reached a record on hopes that an opposition win could unlock European Union funding.
Currency markets showed limited movement. The Bloomberg Dollar Spot Index was little changed, the euro held at $1.1717, and the British pound stayed near $1.3463. The Japanese yen weakened 0.2% to 159.56 per dollar.
In digital assets, Bitcoin rose 0.8% to $71,900.54, and Ether added 0.4% to $2,222.63. Gold moved lower despite the geopolitical backdrop, with spot gold down 0.6% to $4,719.65 an ounce. The pullback suggested that traders were balancing safe-haven demand against a firmer dollar and higher inflation concerns.
Goldman Sachs shares fell about 3% after a miss in fixed-income, currency, and commodities revenue.
Bill Ackman began formal marketing for the US IPO of his closed-end fund and hedge fund.
Somnigroup International agreed to buy Leggett & Platt in an all-stock deal valued at about $2.5 billion.
Palantir Technologies rose more than 2% in premarket trading after President Donald Trump praised its war-fighting capabilities.
Sandisk gained after news that it is set to join the NASDAQ 100 index.
Dolce & Gabbana appointed former Gucci boss Stefano Cantino as co-chief executive officer.
Stefano Gabbana stepped down as chairman of Dolce & Gabbana.
Earnings season formally opened with major banks drawing close investor attention.
Markets stayed relatively steady despite the new blockade, yet oil above $100 a barrel and higher fuel costs kept pressure on sentiment. At the same time, mixed earnings and firm bond yields showed that investors remained cautious as they tracked both corporate results and developments around the Strait of Hormuz.
