Today’s Market Recap: Iran Closes Strait Again and U.S. Seizes Ship for First Time at Ceasefire Countdown, Global Assets Under Pressure in Early Asian Trade

TradingKey - Last Friday, the reopening of the Strait of Hormuz boosted market expectations for a long-term ceasefire, and U.S. stocks continued their rally. The Nasdaq Composite rose for the 13th consecutive trading day, marking its longest winning streak since 1992, and closed at a record high for the third straight session alongside the S&P 500. All three major indices posted weekly gains of over 3%, rising for the third consecutive week and recording their largest weekly percentage gains in nearly a year.

The semiconductor index rose over 2%, outperforming the broader market for the second consecutive day. Both Microsoft and Tesla saw weekly gains exceeding 10%. Travel-related sectors, airlines, and cruise lines rallied significantly, with Royal Caribbean and United Airlines both closing up more than 7%. Netflix shares fell nearly 10% after its second-quarter guidance missed expectations.

Following Iran's announcement to reopen the strait, Treasury prices surged, sending yields diving to one-month lows. The U.S. Dollar Index hit a one-and-a-half-month low during the session. Bitcoin broke above $78,000 intraday, hitting a more than two-month high and rising 5% from its daily low.

Crude oil prices plummeted more than 10% intraday to close at a more than one-month low, with WTI recording double-digit weekly losses for the second consecutive week. LME aluminum fell over 2%, retreating from a four-year high.

Precious metals rebounded, with gold rising over 2% intraday to a one-month high and marking its third consecutive weekly gain; spot silver jumped over 6% at one point during the session, setting its longest winning streak of the year.

In early Monday Asian trading, the Strait of Hormuz was blocked once again as conflicts between the U.S. and Iran escalated locally. International crude oil prices jumped over 7% at the open, while U.S. stock futures fell nearly 1%. Spot gold opened more than 1% lower, and spot silver dropped over 2.5% at one point.

Market Headlines

iPhone's first-quarter shipments in China surged 20% year-on-year, ranking first in the industry. The Chinese smartphone market showed significant divergence in the first quarter, as Apple's iPhone shipments jumped 20% year-on-year, the fastest growth among major brands. Huawei also bucked the trend, with shipments growing 2%, maintaining its industry-leading position with a 20% market share. Meanwhile, soaring memory chip prices have increased overall device costs, which, coupled with supply chain disruptions, have placed the domestic smartphone market under considerable pressure.

As the ceasefire looms, both the U.S. and Iran are ramping up pressure. With the deadline for the two-week U.S.-Iran ceasefire agreement approaching, military confrontations in and around the Strait of Hormuz have escalated sharply. Iran announced renewed restrictions on shipping in the strait, while the U.S. used force for the first time to seize an Iranian cargo ship, as both sides seek to gain more leverage through maximum pressure ahead of a potential new round of peace talks.

Iran denies a second round of talks and insists on lifting the blockade first. A U.S. delegation has arrived in Islamabad, where Vice President Vance plans to lead the group this week to advance U.S.-Iran peace negotiations. However, Iranian state media denied that a "second round of negotiations" would occur, emphasizing that Iran refuses to return to the negotiating table as long as the U.S. continues its blockade of the Strait of Hormuz.

The "Magnificent Seven" have rebounded more than 20% since the S&P 500 hit its March 30 low. The tech giant sector, represented by the "Magnificent Seven," has rebounded more than 20% in just a few weeks, regaining a combined $4 trillion in market value. As the S&P 500 and Nasdaq 100 hit consecutive record highs, the technology sector has surged from the worst-performing sector in the S&P 500 to the primary driver of the rally.

Top 10 Most Active Stocks

The chart below highlights the ten most actively traded stocks from last Friday. Driven by substantial trading volume and high liquidity, these instruments have become essential benchmarks for monitoring global market trends.