S&P 500 Halts 5-Week Slide as Oil Tops $110
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- S&P 500 snapped a five-week losing streak in a holiday-shortened trading week, though the benchmark still posted its weakest quarterly performance since 2022, dragged down by surging energy prices and escalating U.S.-Israeli military action involving Iran.
- Crude oil surged past $110 per barrel last week, with supply concerns tied to reduced traffic through the Strait of Hormuz — a narrow but vital shipping lane.
- U.S. gasoline prices climbed above $4 per gallon for the first time in over three years, underscoring the immediate consumer impact of the energy shock.
- The April 10 U.S. CPI report is expected to show headline inflation rising sharply month-over-month, while core inflation excluding food and energy may stay relatively contained, according to a Reuters poll.
- Interest rate cut expectations have been scaled back as persistent price pressures complicate the Federal Reserve's path, with investors also set to scrutinize minutes from the Fed's March meeting.
- Q1 earnings season kicks off in mid-April, with S&P 500 companies projected by Reuters to deliver double-digit year-on-year profit growth; Delta Air Lines and Constellation Brands are among the first to report.
Why it matters: With oil above $110, gas at a three-year high above $4 per gallon, and rate-cut bets already retreating, the April 10 CPI print becomes the first hard test of whether the Middle East energy shock is spreading into core prices — a hot reading could jolt both the Fed's timeline and equity valuations already nursing their worst quarter since 2022.
