US Stocks Rise, Dollar Declines Amid Hopes for Iran War Talks
U.S. equities climbed sharply on April 13 as investors grew cautiously optimistic about easing tensions in the Middle East. Traders also shifted attention to the start of the first-quarter earnings season.
Market momentum and sectors
Wall Street’s main indexes rallied into the close on Monday. Nine of the 11 S&P 500 sectors finished higher, led by financials and technology.
The S&P software and services index had fallen 23.5% so far this year. That index jumped 4.6% on Monday as buyers returned to beaten-down names.
Regional contrasts
European benchmarks ended the day lower as Iran-related risks weighed on sentiment. U.S. stocks staged a late-session recovery on signs of progress in peace negotiations.
FX, bonds and commodities
The dollar declined for a sixth straight session as concerns eased after a Strait of Hormuz blockade took effect. Benchmark U.S. Treasury yields drifted lower in choppy trade.
Oil pared gains and settled below $100 per barrel. Gold was little changed by the market moves.
Earnings and forecasts
First-quarter earnings season ramps up this week with major banks reporting results. Analysts now expect S&P 500 year-on-year earnings growth of 13.9%, down from 14.4% forecast on April 1, according to LSEG data.
Names in the beaten software group include Oracle, Salesforce and Intuit. Big-bank reports will be a key near-term focus for investors.
Geopolitical drivers
Markets tried to look past failed U.S.-Iran talks as hopes for de-escalation gained traction. Traders reacted to both the diplomatic signals and recent security developments.
Former President Donald Trump warned that oil and gasoline prices could stay elevated after his decision to attack Iran. The University of Michigan reported record-low consumer sentiment, with Joanne Hsu citing rising fuel costs.
What to watch next
- Developments in the Middle East
- U.S. producer prices for March
- Remarks from Fed officials including Austan Goolsbee and Michael Barr
- Quarterly results from JPMorgan Chase, Citigroup and Wells Fargo
- Japan industrial output for February
- India WPI inflation for March
- March CPI reports for several European countries
- South Korea international trade for March
In summary, US stocks rose while the dollar declined as investors weighed hopes for Iran talks against geopolitical risks. Market attention now turns to corporate earnings and upcoming economic data.
Reporting by Stephen Culp; editing by Nia Williams for Filmogaz.com.
