[New York Stock Market] Opens Lower, Then Trims Losses... WTI Surpasses $108

Investment Sentiment Weakens Amid Continued Airstrikes, Not a Ceasefire

New York Stock Exchange. Photo by Yoonju Hwang, New York Correspondent

U.S. President Donald Trump announced in a national address the previous day that airstrikes against Iran would continue for two to three weeks. As a result, on April 2 (local time), the three major U.S. stock indexes opened lower but later pared losses. This suggests that the market is becoming accustomed to the volatility related to the Iran war and is taking a wait-and-see approach to the situation.

According to the home trading system (HTS), as of 10:50 a.m., the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) was down 126.92 points (0.27%) from the previous trading day, at 46,438.82. The S&P 500 Index, focused on large-cap stocks, was down 14.86 points (0.22%) at 6,560.46, while the Nasdaq Index, which is tech-heavy, was down 74.09 points (0.33%) at 21,766.86.

President Trump stated in his national address the previous day, "We will return [Iran] to the Stone Age," and said that airstrikes would continue for the next two to three weeks. Investment sentiment appears to have weakened as the announcement differed from expectations for a ceasefire declaration or an end to military operations.

International oil prices were the first to react. At this time, West Texas Intermediate (WTI) crude for May delivery was trading at $108.42 per barrel, up 8.04% from the previous session. Brent crude for June delivery was at $106.46, up 5.20% from the previous session.

Energy stocks were mixed. ExxonMobil was down 0.15%, while Chevron was up 1.42%. Airline stocks plunged across the board as hopes for an end to the war faded, with Delta down 1.52%, American Airlines down 3.41%, and United down 3.00%.

In contrast, defense stocks rose. Lockheed Martin was up 1.03%, AeroVironment up 0.46%, RTX up 0.77%, and Northrop Grumman up 1.36%.

Kevin Mahn, Chief Investment Officer (CIO) at Hennion & Walsh, said, "The longer oil prices remain elevated, the more consumer spending will decrease and the more economic growth will slow." He added, "In terms of oil prices and inflation, we will have to wait until the conflict between higher oil prices and interest rate hikes is resolved before we see substantial easing."

This content was produced with the assistance of AI translation services.