US stocks staged a partial recovery after initial losses, heading into the Easter long weekend amid ongoing geopolitical tensions. Comments from former President Donald Trump regarding Iran added to investor uncertainty, contributing to early market declines. The S&P 500 edged up 0.1 per cent after falling more than 1.5 per cent earlier in the session, while the Nasdaq Composite rose 0.2 per cent, also rebounding from a deep loss. The Dow finished 0.1 per cent lower.
Oil prices experienced a significant surge, driven by the ongoing US-Israeli conflict with Iran. West Texas Intermediate crude jumped 11.8 per cent to $US111.79 a barrel, while Brent Crude increased 7.5 per cent to $US108.77. Amidst the turmoil, Iran is reportedly drafting a protocol with Oman to monitor traffic through the Strait of Hormuz. The UK hosted a virtual meeting with approximately 40 nations to discuss reopening and securing the Strait.
In company news, Tesla shares slumped 5.4 per cent following disappointing quarterly delivery data. Blue Owl, an alternative asset manager, experienced a 1.6 per cent dip after announcing limits on redemptions from two private credit funds due to increased withdrawal requests. Blue Owl specialises in providing direct lending and other credit solutions to companies, as well as investing in and managing various types of real estate. Microsoft, the tech giant known for its software products and cloud services, rose 1.1 per cent after pivoting its AI sales strategy to focus on selling Copilot.
Economic data presented a mixed picture of the US labour market. While initial jobless claims unexpectedly fell, a report from Challenger, Gray & Christmas indicated a 25 per cent increase in job-cut announcements in March. Meanwhile, SpaceX is reportedly boosting its IPO target valuation above $US2 trillion as it prepares for a potential market debut.
