2026.4.18 US Market Close | Risk appetite recovers as geopolitical tensions ease

On April 18, the New York stock market staged a strong rebound, with all major indices surging over 1% on news of easing geopolitical tensions. As international oil prices plunged more than 10% following Iran's announcement to reopen passage through the Strait of Hormuz, inflation fears subsided, and risk-on sentiment spread throughout the market. Major Index Performance - Dow Jones: +1.79% - Rallied on relief from easing geopolitical risks. - S&P 500: +1.2% - Gained as plunging oil prices eased inflation fears. - Nasdaq: +1.52% - Led by broad strength in tech, extending from semiconductors to software. Key Market Drivers - Oil Price Plunge: Iran's announcement to reopen the Strait of Hormuz sent international oil prices tumbling over 10%, alleviating the market's primary concern about inflation. - Broadening Tech Rally: The rally, previously led by semiconductors, expanded to include software-related stocks, signaling a healthier, less concentrated market. - Sector Rotation: While the energy sector, including ExxonMobil, lagged due to falling oil prices, the airline industry saw strong gains on expectations of cost savings, highlighting a clear rotation of capital. - Fed Policy Outlook: Stabilizing oil prices fueled market expectations that the Fed's aggressive rate-hiking cycle may be nearing its end. Notable Stock Movements - Netflix (NFLX): Finished higher, but its 83% surge in Q1 net income was largely driven by a one-time $2.8 billion fee. The market remained skeptical due to a 43% jump in SG&A expenses and a reduction in its share buyback program. - ExxonMobil (XOM), Chevron (CVX): Declined, facing downward pressure as a direct result of the sharp drop in international oil prices. - U.S. Global Jets ETF (JETS): Gained as airline stocks rallied broadly on expectations of significant cost savings from lower fuel prices.