U.S. Stock Market: S&P 500 Index Gains for Four Consecutive Days, Investors Downplay Concerns Over Escalating Iran War

MaticHoleFiller · 2026-04-08T09:00:48+00:00

Despite Trump's increased threats against Iran, the S&P 500 and Nasdaq 100 indices still rose. The market's reaction to the military conflict was relatively subdued, as investors expect the situation not to escalate quickly. Meanwhile, the expansion of the U.S. service sector slowed, and economic indicators showed signs of weakness. Morgan Stanley recommends increasing holdings in U.S. stocks, especially cyclical and growth stocks.

MaticHoleFiller

2026-04-08 09:00:48

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Despite U.S. President Trump escalating his threats against Iran, the S&P 500 index still rose for the fourth consecutive trading day.

The S&P 500 index rose 0.4%, and the Nasdaq 100 index rose 0.6%.

The VIX index, which measures market volatility, hovered around 24.

Trump increased his threats before the deadline he set, demanding that Iran reopen the Strait of Hormuz, or else it would face further strikes targeting civilian infrastructure.

Meanwhile, media reports said that Iran rejected a proposed temporary ceasefire earlier on Monday.

“Markets see the ‘carrot,’ and they also see the ‘stick.’ On the one hand, there are ceasefire talks; on the other hand, there is continued bombing,” Steve Sosnick, chief strategist at Interactive Brokers, said. “Aside from the brief volatility early on in Trump’s remarks, the stock market and oil market overall reacted rather mildly. Investors clearly still hope that hostile actions won’t quickly escalate.”

Investors also digested economic data that came in weaker than expected. In the U.S., the March services sector’s pace of expansion slowed, employment indicators saw the largest decline since 2023, and input costs accelerated upward notably.

Kevin Brocks of 22V Research said it’s not surprising that the Iran war has weighed on business confidence: “For the Federal Reserve, there’s almost no new information here.”

Oil prices continued to edge higher. OPEC+ on Sunday warned that damage to energy infrastructure in the Middle East could have long-term effects on supply even after the conflict ends.

Morgan Stanley believes U.S. stocks may be close to a bottom and recommended starting to add positions, especially in cyclical sectors and high-quality growth stocks.

At the close, the S&P 500 index rose 0.4% to 6611.83;

The Dow Jones Industrial Average rose 0.4% to 46669.88;

The Nasdaq Composite index rose 0.5% to 21996.34;

The Nasdaq 100 index rose 0.6% to 24192.17;

The Russell 2000 index rose 0.4% to 2540.643.

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责任编辑：丁文武

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