U.S. stocks finished slightly mixed on Thursday, April 2, as diplomatic signals from the Middle East helped calm markets that had been rattled by President Trump’s threats of intensified military action against Iran. Oil prices exploded higher, with the front-month WTI crude contract posting its biggest-ever premium over the second month. European bourses mostly declined, though London’s FTSE 100 bucked the trend. All major U.S. and European exchanges will be closed on Good Friday, April 3.
U.S. Markets: Mixed Close, Strong Week
Wall Street opened sharply lower on Thursday after Trump’s national address the night before dashed hopes of an imminent ceasefire. However, stocks recovered through the afternoon session after Iran’s foreign ministry said it was drafting a protocol with Oman to manage traffic through the Strait of Hormuz, and Britain announced that dozens of countries were discussing ways to end the crisis, according to Reuters.
| Index | Close | Change | % Change |
|---|---|---|---|
| S&P 500 | 6,582.69 | +7.37 | +0.11% |
| Nasdaq Composite | 21,879.18 | +38.23 | +0.18% |
| Dow Jones Industrial Average | 46,504.67 | −61.07 | −0.13% |
| Russell 2000 | 2,530.04 | +17.67 | +0.70% |
| VIX (Fear Gauge) | 23.87 | −0.67 | −2.73% |
Despite the muted daily moves, it was a strong week for equities. The S&P 500 gained 3.36%, the Nasdaq rose 4.44%, and the Dow climbed 2.96% — the biggest weekly advance in four months, according to Reuters. The Russell 2000 small-cap index rose 3.19% for the week.
Sector rotation was evident: Utilities rose 0.6% and real estate gained 1.5%, as investors favored defensive plays. Consumer discretionary fell 1.5%, the worst sector on the day, dragged by Tesla’s 5.4% drop following weak first-quarter delivery figures. Intel surged 4.83%, while SBA Communications jumped 18.93%, topping S&P 500 gainers.
Oil Markets: Historic Moves
Oil markets stole the spotlight on Thursday with a series of historic moves:
- WTI crude (May delivery) surged 11.93% to $112.06 per barrel, after closing at $100.12 on Wednesday.
- The May–June WTI spread blew out to more than $13 — the largest front-month vs. second-month spread in history, dating back to 1983, according to CNBC.
- Brent crude futures (June) closed up about 7% near $109.03.
- The Brent spot price for physical cargoes soared to $141.36 — the highest level since the 2008 financial crisis, according to S&P Global data cited by CNBC.
“The speech was bullish and so now we’re seeing some short covering in the May contract on the settle,” said Bob McNally, president of Rapidan Energy, to CNBC. Amrita Sen, founder of Energy Aspects, noted that the futures price is “almost giving a false sense of security” — with European diesel prices near $200 per barrel.
However, traders priced October WTI at about $82 per barrel, signaling expectations that the disruption will be temporary. “The market thinks this crisis will likely be over by the fall,” said Michael Antonelli, market strategist at Baird, via Reuters.
Trump Dashes Ceasefire Hopes
Speaking from the White House on Wednesday evening, President Trump offered no firm timeline for ending the five-week-old conflict and doubled down on threats of escalation. “We’re going to hit them extremely hard over the next two to three weeks… We’re going to bring them back to the Stone Ages where they belong,” he said, according to Investing.com.
He reiterated his threat to strike Iran’s electricity infrastructure if Tehran did not accept a deal. Iran denied that any direct talks with Washington had taken place. Trump also urged oil-dependent countries to secure access to the Strait of Hormuz themselves — or purchase U.S. energy.
European Markets: Mostly Lower, FTSE 100 Bucks Trend
European stocks traded mostly lower on Thursday as ceasefire hopes collapsed. However, markets clawed back some of their earlier losses by the close, according to Investing.com.
| Index | Close | Change | % Change |
|---|---|---|---|
| STOXX 600 | 596.64 | −1.19 | −0.20% |
| FTSE 100 🇬🇧 | 10,436.29 | +71.50 | +0.69% |
| DAX 🇩🇪 | 23,168.08 | −130.81 | −0.56% |
| CAC 40 🇫🇷 | 7,962.39 | −18.88 | −0.24% |
The UK’s FTSE 100 outperformed, rising 0.69%, buoyed by energy heavyweights Shell (+2.90%) and BP (+2.64%) benefiting from the oil surge. The blue-chip index also found support from insurer and reinsurer stocks including 3i Group (+3.99%). The Investing.com report noted that the British pound fell 0.5% against the dollar to 1.3238.
Germany’s DAX was hit hardest among the majors, with Deutsche Telekom (−3.36%), Infineon (−2.96%), and Deutsche Bank (−2.62%) among the top decliners. France’s CAC 40 saw losses led by STMicroelectronics (−2.84%) and Societe Generale (−2.61%), while energy giant TotalEnergies (+2.40%) and automaker Stellantis (+3.97%) bucked the trend.
Corporate Fallout: Energy & Aviation
The oil crisis is sending ripples through the corporate world, Investing.com reported:
- Shell is in advanced talks with Venezuela to expand gas development across multiple offshore fields, targeting access to approximately 20 trillion cubic feet of reserves.
- Ryanair CEO Michael O’Leary warned that jet fuel supplies to Europe could face disruption from June if the Middle East conflict persists, raising the prospect of summer flight cancellations.
- Lufthansa flagged early signs of supply tightness, particularly in Asia, where some airports are already limiting additional flights.
- Chevron CEO Mike Wirth warned last week that the futures price is not reflecting the scale of the oil supply disruption from the Strait of Hormuz closure, per CNBC.
In other corporate news, Blue Owl capped withdrawals from two retail-focused funds, reviving private credit jitters. SpaceX confidentially filed for a U.S. IPO targeting a $1.75 trillion valuation. Globalstar jumped after a report that Amazon is in talks to acquire the satellite company, according to Reuters.
Gold & Safe Havens
Gold pulled back sharply after its prior session’s rally on ceasefire hopes. Spot gold fell over 2% to $4,655 per ounce, while silver dropped 5.2% to $72.11, as surging oil prices stoked inflation fears, kept bond yields elevated, and strengthened the dollar — all headwinds for precious metals, Investing.com noted. The U.S. 10-year Treasury yield edged to 4.309%, while the Dollar Index (DXY) held at 100.028.
Looking Ahead
Both U.S. and European markets are closed on Good Friday, April 3. The U.S. March nonfarm payrolls report will be released Friday, but with no trading, market reaction will be delayed until Monday. Investors will be watching closely for any weekend developments on the Iran front, Strait of Hormuz negotiations, and oil supply dynamics — all of which could set the tone for the return to trading next week.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data sourced from Investing.com, CNBC, and Reuters. Market data as of April 2, 2026 closing.