US stocks post weekly gains as Iran truce holds
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- All three major indexes scored weekly gains despite mixed session results, with the S&P 500 falling 0.10% to 6,817.90, the Dow dropping 0.59% to 47,903.18, and the Nasdaq gaining 0.35% to 22,901.06 on the day.
- The Labor Department's CPI report showed consumer prices logging their largest monthly jump in nearly four years, with gasoline prices surging 21.2% due to the Iran war's energy shock.
- Chipmakers led the market to a record high while financial stocks underperformed ahead of major US banks' earnings next week, with analysts projecting 13.9% aggregate S&P 500 earnings growth for Q1.
- Iran kept the Strait of Hormuz closed, demanding a ceasefire in Lebanon and the unfreezing of assets as conditions to resume negotiations, threatening the fragile two-week truce.
- Israel continued bombarding Lebanon even as Prime Minister Netanyahu said he was seeking direct talks with Beirut, undermining the ceasefire.
- The University of Michigan consumer sentiment index plunged to a record low, with near-term expectations dropping to their weakest level since May 1980.
- San Francisco Fed President Mary Daly told Reuters the oil shock from the Iran war would extend the timeline on bringing inflation back to the central bank's 2% target.
Why it matters: Markets scored weekly gains despite the largest CPI jump in nearly four years (gas up 21.2%) and record-low consumer sentiment not seen since 1980 — both fueled by the Iran war's energy shock. Core CPI came in cooler than expected, but San Francisco Fed's Mary Daly said the oil shock extends the timeline on hitting the Fed's 2% inflation target.
