Indices are up: Dow 0.03%, S&P 500 0.09%, Nasdaq 0.14%
Job creation in March exceeded expectations, unemployment rate decreases ISM non-manufacturing PMI disappoints, prices reach their highest level in 3 and a half years Soleno Therapeutics soars following Neurocrine’s $2.9 billion acquisition agreement (Mid-afternoon update) by Stephen Culp and Purvi Agarwal
Wall Street edged slightly higher on Monday, as investors looked for signs of progress towards a ceasefire agreement between the United States and Iran, amidst increasingly strong threats from President Donald Trump if Iran does not reopen the Strait of Hormuz.
Iran rejected the American proposal for an immediate ceasefire, insisting instead on a permanent end to the war, according to the Islamic Republic News Agency (IRNA). This rejection follows Trump’s increasingly bellicose ultimatums, promising to “rain hell” on Iran if the crucial chokepoint of the Strait of Hormuz remained closed to tanker traffic.
Investors were somewhat reassured by a report indicating that the United States, Iran, and a group of regional mediators continued to discuss the terms of a potential ceasefire.
The three major US indices inched higher, with the S&P 500 and Nasdaq on track for their fourth consecutive day of gains.
“On a day like today, investors don’t do much,” said Thomas Martin, senior portfolio manager at GLOBALT in Atlanta. “We don’t know where the truth lies in all the stories, whether it’s from the American side, the Iranian side, or the Pakistani side.”
Martin added that “Trump really needs to open the Strait of Hormuz… he’s made quite a fuss about it” and said investors are all “on pins and needles.”
The US-Israeli conflict with Iran has been shaking the markets for just over a month. The surge in crude oil prices fueled inflation fears and stocks fell. Even though the S&P was on track for its fourth consecutive session of gains, the flagship index remains down 4% since the beginning of the conflict.
Economic data released on Monday showed that the US services sector grew at a slower pace than expected in March, with employment contracting in the sector and prices, an inflation indicator, reaching their highest level since October 2022.
The highly anticipated March jobs report, released on Good Friday, showed that the US economy added 178,000 jobs last month, nearly triple the consensus of 60,000, with the increase offset by a revision of February job losses, which increased from 92,000 to 133,000.
The Dow Jones Industrial Average gained 15.40 points, or 0.03%, to 46,519.35, the S&P 500 gained 5.96 points, or 0.09%, to 6,588.65, and the Nasdaq Composite gained 31.57 points, or 0.14%, to 21,910.75.
Among the S&P 500’s 11 major sectors, communication services recorded the biggest percentage gains, while materials lagged behind.
Travel/leisure and aerospace and defense stocks were the top performers.
Trading volume was expected to be low on Monday, as many markets in Europe and Asia were closed for holidays. Soleno Therapeutics’ shares jumped 32.4% after Neurocrine Biosciences agreed to acquire the rare diseases drug maker for $2.9 billion in cash.
The rise in bitcoin prices boosted US-listed shares of cryptocurrency-related companies Coinbase and MicroStrategy by 1.8% and 3.9% respectively.
Advancing issues outnumbered declining ones by a ratio of 1.47 to 1 on the NYSE. There were 68 new highs and 41 new lows on the NYSE.
On the Nasdaq, 2,787 stocks advanced and 1,843 declined, with advancing issues outnumbering declining ones by a ratio of 1.51 to 1.
The S&P 500 hit 7 new 52-week highs and a new low, while the Nasdaq Composite hit 50 new highs and 56 new lows.
