Stock Market News for Apr 7, 2026

U.S. stocks closed higher on Monday as investors assessed President Donald Trump’s continuous threats of intensifying the attack if Iran doesn’t open the Strait of Hormuz, while also hoping for the Middle East conflict to end soon. All three major indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.4% or 165.21 points, to end at 46,669.88 points.  

The S&P 500 climbed 0.4%, or 29.33 points, to finish at 6,612.02 points. Consumer staples and consumer discretionary stocks were the biggest gainers, while utility stocks were the worst performers.

The Consumer Staples Select Sector SPDR (XLP) gained 0.9%. The Consumer Discretionary Select Sector SPDR (XLY) added 0.8%. The Utilities Select Sector SPDR (XLU) declined 0.4%. The Information Technology Select Sector SPDR (XLK) gained 0.5%. Eight out of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq climbed 0.5%, or 117.16 points, to close at 21,996.34 points.

The fear gauge, CBOE Volatility Index (VIX), was up 1.26% to 24.17. Advancers outnumbered decliners on the NYSE by a 1.93-to-1 ratio. On the Nasdaq, a 1.63-1 ratio favored advancing issues. A total of 14.78 billion shares were traded on Monday, lower than the last 20-session average of 19.51 billion.

Stocks Rise on Hopes of Iran Conflict Ending Soon

Trump’s threats to escalate the attack on Iran if it doesn’t open the Strait of Hormuz continued on Monday, weighing on stocks. Markets opened mixed following the threats. Tensions grew further following reports that Iran rejected proposals for an immediate ceasefire instead of ending the war.

However, investors were calmed following a report that the United States, Iran and some other regional mediators were working toward a partial 45-day ceasefire that could lead to the end of the conflict.  

Separately, Reuters reported that both Iran and the United States were presented with a proposal aimed at ending the conflict, which—if accepted—would lead to an immediate ceasefire and allow the Strait of Hormuz to reopen.

This helped indexes rebound and finish in positive territory. Also, oil prices swung wildly in a bout of volatile trading. The U.S. West Texas Intermediate contract for May rose 0.78% to end at $112.41 per barrel.

Travel and leisure stocks were the biggest gainers on Monday. Shares of Carnival Corporation & plc (CCL) gained 1.3%, while Royal Caribbean Cruises Ltd. (RCL) advanced 0.8%. Carnival Corporation has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

No major economic data was released on Monday. 

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This article originally published on Zacks Investment Research (zacks.com).

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