Dow Jones slips 40 points, S&P gains as ceasefire hopes lift stocks

• Energy inflation spiked 10.9% in March as Strait of Hormuz shipping disruptions kept oil prices above $97 per barrel for WTI and $95 for Brent crude
• A fragile two-week U.S.-Iran ceasefire propelled the S&P 500 toward its strongest weekly gain since November, though both sides have accused each other of violations
• Fed rate cut expectations shifted from two cuts to zero as San Francisco Fed President Mary Daly warned the oil shock would delay progress toward the central bank's 2% inflation target

Market Summary: Mixed Equities Amid Inflation Data and Ceasefire Hopes

Key Market Movements

U.S. stocks showed mixed performance on April 10, 2026, with the S&P 500 up 0.28%, Nasdaq 100 gaining 0.43%, while the Dow Jones fell 40 points (-0.57%). Despite Friday's subdued trading, major indices remained on track for strong weekly gains—the S&P 500 posting its best week since November, the Dow its strongest since June, and the Nasdaq up over 4%.

Inflation and Fed Policy

March CPI data came in at 3.3% year-over-year, matching expectations, while core CPI (excluding food and energy) registered 2.6%, slightly below the 2.7% forecast. However, energy prices surged 10.9% during the month due to Middle East disruptions. San Francisco Fed President Mary Daly indicated the oil shock would delay progress toward the Fed's 2% inflation target. Market expectations have shifted dramatically—traders now price in zero rate cuts for 2026, down from two cuts anticipated before geopolitical tensions escalated.

Geopolitical Developments

A fragile two-week U.S.-Iran ceasefire provided support to equities, though both nations have accused each other of violations. Israeli Prime Minister Netanyahu's openness to Lebanon negotiations offered additional relief. However, shipping through the critical Strait of Hormuz remains severely constrained, keeping oil prices elevated. WTI crude held above $97 per barrel, with Brent above $95.

Corporate Highlights

CoreWeave announced a multi-year agreement with AI startup Anthropic and priced a convertible bond offering at a premium, driving investor interest in AI infrastructure plays.

Market Outlook

Continued volatility is expected as investors navigate elevated inflation, restrictive Fed policy, and ongoing Middle East risks.