[New York Stock Market] Closes Mixed Amid Iran War Watch... WTI Surges Past $111

Major Indexes Open Lower, Losses Narrow
S&P 500 and Nasdaq Rebound
Tesla Plunges as Q1 Deliveries Miss Expectations

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

As U.S. President Donald Trump announced plans to extend the Iran war for another two to three weeks, the three major U.S. stock indexes ended mixed on April 2 (local time), amid uncertainty about passage through the Strait of Hormuz. While the stock market, having become resilient to the volatility surrounding the Iran conflict, remained cautious and waited to gauge the situation, international oil prices surged, increasing overall volatility.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,504.67, down 61.07 points (0.13%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, rose by 7.37 points (0.11%) to finish at 6,582.69, and the technology-heavy Nasdaq index gained 38.234 points (0.18%) to close at 21,879.182.

The stock market no longer reacts sharply to President Trump's remarks. In a national address the previous day, President Trump threatened Iran, saying, "They (Iran) will be sent back to the Stone Age, where they belong, within two to three weeks."

All three major indexes opened lower, but the declines were not significant as the session progressed. Notably, the market pared losses on reports that Iran was preparing an agreement to ensure safe passage through the Strait of Hormuz and the Gulf of Oman.

With expectations that the war would continue, defense stocks rose across the board. Lockheed Martin climbed 0.84%, AeroVironment 0.47%, RTX 0.77%, and Northrop Grumman 0.79%. In contrast, airline stocks plummeted: Delta fell by 1.30%, American Airlines by 2.70%, and United Airlines by 2.83%.

Among the largest market-cap stocks, there was little movement and they ended mostly flat. Nvidia rose 0.80%, Apple 0.01%, Microsoft (MS) 1.19%, while Amazon dropped 0.59%, Alphabet 0.52%, and Meta 0.84%, resulting in a mixed finish.

Investor sentiment in the international oil market was highly volatile. On the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude for May delivery soared by $11.42 (11.41%) to close at $111.54 per barrel. On the ICE Futures Exchange, Brent crude for June delivery surged by 7.78% to settle at $109.03 per barrel.

According to the Wall Street Journal (WSJ), the closing price of WTI hit its highest level in three years and ten months since June 2022, and for the first time in four years since 2022, WTI surpassed Brent crude in price.

Todd Schoenberger, Chief Investment Officer (CIO) of Crosscheck Management, emphasized, "For the United States, reopening the strait is much more important because of helium than oil." He added, "Helium is used in semiconductor manufacturing, making it far more valuable and irreplaceable than foreign oil."

Among energy stocks, ExxonMobil declined by 0.21%, while Chevron rose by 0.83%. Energy stocks in general rose: Occidental Petroleum gained 1.04%, Diamondback Energy 1.87%, and APA 1.67%.

Tesla plunged 5.37% after its first-quarter electric vehicle deliveries fell far short of market expectations. Tesla announced that its first-quarter deliveries totaled 358,000 units, down 14% from the previous quarter. The company underperformed market expectations for two consecutive quarters, including the fourth quarter of last year.

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