Summary

Stocks Rally as President Trump Considers Ending Iran War The S&P 500 Index SPY today is up +1.33%, the Dow Jones Industrial Average DIA is up +1.10%, and the Nasdaq 100 Index QQQ is up +1.45%. June E-mini S&P futures (ESM26) are up +1.48%, and June E-mini Nasdaq futures (NQM26) are up +1.59%. Stock indexes are moving sharply higher today after the Wall Street Journal reported that President Trump had signaled he was willing to end the US military campaign against Iran even if the Strait of Hormuz remains closed. The report said Mr. Trump believes the US should wind down hostilities while pressuring Iran diplomatically to reopen the Strait. If that fails, the US will press allies in Europe and the Gulf to take the lead on reopening the waterway. US and Israeli forces pressed ahead with attacks on Iran today, while Iran hit a Kuwaiti oil tanker off Dubai in a drone attack, and the UAE reported a drone attack.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. Falling bond yields are also supportive of stocks, as the 10-year T-note yield dropped to a 1-week low of 4.30% today. Bond yields are declining after WTI crude oil prices fell from a 3-week high today and are little changed, easing inflation concerns. Signs of strength in China’s economy are supportive for global growth prospects and stocks. The China March manufacturing PMI rose +1.4 to 50.4, better than expectations of 50.1 and the strongest pace of expansion in a year. Also, the China March non-manufacturing PMI rose +0.6 to 50.1, better than expectations of 49.9. Crude oil prices (CLK26) remain supported despite President Trump signaling he is willing to end the war with Iran, as the Strait of Hormuz remains effectively closed. The closure of the Strait of Hormuz, through which about a fifth of the world’s oil and natural gas flows, has choked off oil and gas flows due to Iran’s attacks on shipping in the waterway and forced Gulf producers to cut output because they can’t export from the region. Iran is also seeking to control ship transit through the Strait of Hormuz, asking vessels to provide lists of crew and cargo, along with voyage details and bills of lading if they want to travel through the waterway. Goldman Sachs warns that crude prices could exceed the 2008 record high of close to $150 a barrel if flows through the Strait of Hormuz remain depressed through March. The International Energy Agency said last Monday that more than 40 energy sites across nine countries in the Middle East have been "severely or very severely" damaged, potentially prolonging disruptions to global supply chains once the war in Iran ends. The markets are discounting a 3% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting. Overseas stock markets are mixed today. The Euro Stoxx 50 is up +0.60%. China's Shanghai Composite fell from a 1-week high and closed down -0.80%. Japan's Nikkei Stock 225 fell to a 3-month low and closed down -1.58%. Interest Rates June 10-year T-notes (ZNM6) today are up by +10 ticks. The 10-year T-note yield is down -4.6 bp to 4.303%. June T-notes rose to a 1-week high today, and the 10-year T-note yield fell to a 1-week low of 4.295%. T-notes are climbing today after WTI crude oil prices fell from a 3-week high and were little changed, easing inflation concerns. European government bond yields are moving lower today. The 10-year German bund yield is down -2.1 bp to 3.014%. The 10-year UK gilt yield is down -3.9 bp to 4.895%. Eurozone Mar CPI rose +2.5% y/y, the most in 14 months, but below expectations of +2.6% y/y. Mar core CPI rose +2.3% y/y, weaker than expectations of +2.4% y/y. German Feb retail sales unexpectedly fell -0.6% m/m, weaker than expectations of a +0.3% m/m increase. ECB Governing Council member Madis Muller said, "The ECB can't rule out changes in interest rates already in April if energy prices remain at a high level for a long time." Swaps are discounting a 50% chance of a +25 bp ECB rate hike at its next policy meeting on April 30. US Stock Movers The Magnificent Seven technology stocks are climbing today, helping lift the overall market. Meta Platforms META is up more than +3%, and Amazon.com AMZN, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA are up more than +2%. Also, Alphabet GOOGL is up more than +1%, and Apple AAPL is up +0.81%. Marvell Technology MRVL is up more than +7% to lead gainers in the Nasdaq 100, and chip stocks are higher after Nvidia said it is investing $2 billion in the company. Also, ARM Holdings Plc ARM is up more than +4%, and Lam Research LRCX is up more than +3%. In addition, Western Digital WDC, Seagate Technology Holdings Plc STX, NXP Semiconductors NV NXPI, KLA Corp KLAC, Applied Materials AMAT, ASML Holding NV ASML, and Microchip Technology MCHP are up more than +2%. Home builders and building suppliers are moving higher today after the 10-year T-note yield fell to a 1-week low, which lowers mortgage rates and supports housing demand. Builders Firstsource BLDR and Lennar LEN are up more than +4%, and Toll Brothers TOL is up more than +2%. Also, DR Horton DHI, Pulte Group PHM, and KB Home KBH are up more than +1%. Apellis Pharmaceuticals APLS is up more than +136% after being acquired by Biogen for $5.6 billion, or about $41 a share. Centessa Pharmaceuticals CNTA is up more than +45% after Eli Lilly agreed to buy the company for about $7.8 billion or $38 a share, plus a further $9 a share if three milestone targets are met. Scholar Rock SRRK is up by more than +14% after it resubmitted its Biologics License Application for apitegromab, a muscle-targeted therapy for spinal muscular atrophy. Nebius Group NV NBIS is up more than +7% after saying it plans to build a 310-megawatt server facility in Finland. FactSet Research Systems FDS is up more than +4% after reporting Q2 revenue of $611 million, better than the consensus of $604.9 million, and raising its full-year revenue forecast to $2.45 billion to $2.47 billion from a previous estimate of $2.42 billion to $2.45 billion, above the consensus of $2.45 billion. Phreesia PHR is down more than -23% after cutting its 2027 revenue forecast to $510 million to $520 million from a previous forecast of $545 million to $559 million, well below the consensus of $550.9 million. McCormick & Co MKC is down more than -5% to lead losers in the S&P 500 after agreeing to acquire Unilever’s Food business for $15.7 billion in cash and $29.7 billion of stock. Constellation Energy CEG is down more than -5% to lead losers in the Nasdaq 100 after forecasting 2026 adjusted operating EPS of $11 to $12.00, the midpoint below the consensus of $11.72. Colgate-Palmolive CL is down more than -1% after TD Cowen downgraded the stock to hold from buy. Earnings Reports(3/31/2026) FactSet Research Systems Inc (FDS), McCormick & Co Inc/MD (MKC), nCino Inc (NCNO), NIKE Inc (NKE), PVH Corp (PVH), RH (RH), TD SYNNEX Corp (SNX). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.For more information please view the Barchart Disclosure Policy here. More news from Barchart - The Bond Market Is Flashing a Warning. Most Investors Aren’t Watching. - This Investing Strategy Dares You to Ignore the Siren Song of AI and Accepted a Guaranteed 4% Yield for Life - There Is No Housing Shortage: What Legendary Investor Michael Burry Really Thinks Is Wrong with the U.S. Housing Market - Stock Index Futures Rally on Prospect of End to Middle East Conflict, U.S. Economic Data and Fed Speak in Focus