Stock Market Today, April 2: Markets Muted on Mixed Iran War Reports

Oil and geopolitics remained firmly in focus before markets closed for Good Friday. The S&P 500 (^GSPC +0.11%) rose 0.11% to 6,582.69, finishing the week up 1.63%. The Nasdaq Composite (^IXIC +0.18%) gained 0.18% to 21,879.18, while the Dow Jones Industrial Average (^DJI 0.13%) slipped 0.13% to 46,504.67.

Market movers

Higher oil prices pressured airline and travel stocks today, while tech performance was mixed. Tesla (TSLA 5.46%) dropped by over 5% after its Q1 sales missed estimates. Competitor, Rivian Automotive (RIVN +3.08%) gained over 3%.

Cautious optimism buoyed tech leaders such as Microsoft (MSFT +1.01%) and Advanced Micro Devices (AMD +3.36%). News of artificial intelligence (AI) security incidents had little impact on the sector, at least for now.

What this means for investors

Markets fell in early trading as hope for an imminent end to the conflict in Iran gave way to renewed escalation fears. However, indexes recovered before the close on reports that Iran is drafting a protocol with Oman to allow traffic through the Strait of Hormuz.

Passage through the Strait has come to a near standstill during the war, pushing up oil prices and pressuring stocks. Brent crude gained 8% today to finish at $109. The energy shock has fueled concerns of higher inflation and potential supply chain disruptions.

Private credit jitters came into focus again today after Blue Owl Capital (OWL 1.61%) announced withdrawal restrictions on two of its funds. Funds that make loans to private companies, including software firms, have come under scrutiny as investors worry about their lending criteria.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Tesla. The Motley Fool has a disclosure policy.