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– Rising Indices: Dow 0.03%, S&P 500 0.09%, Nasdaq 0.14% – Job creation in March exceeds expectations, unemployment rate decreases – Non-manufacturing ISM PMI reveals record prices in 3.5 years – Soleno Therapeutics soars after Neurocrine acquisition for $2.9 billion (update in the mid-afternoon) by Stephen Culp and Purvi Agarwal
Wall Street slightly advanced on Monday, as investors seek signs of progress towards a ceasefire agreement between the United States and Iran, amid escalating threats from President Donald Trump if Iran does not reopen the Strait of Hormuz.
Iran rejected the American ceasefire proposal, insisting instead on a permanent end to the war, according to the Islamic Republic News Agency (IRNA). This rejection follows Trump’s increasingly belligerent ultimatums, promising to unleash “hell” on Iran if the crucial chokepoint of the Strait of Hormuz remains closed to tanker traffic.
Investors were somewhat reassured by reports that the US, Iran, and a group of regional mediators continued to discuss the terms of a potential ceasefire.
The three major US indices made slight gains, with the S&P 500 and Nasdaq set to mark their fourth consecutive day of increases.
“On a day like today, investors aren’t doing much,” said Thomas Martin, a 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, Iranian side, or Pakistani side.”
Martin said, “Trump really needs to open the Strait of Hormuz… he’s made quite a fuss about it,” adding that investors are “on pins and needles.”
The US-Israeli-Iranian conflict has shaken markets for over a month. Crude oil prices surge, fueling inflation fears and causing stock declines. Despite the potential fourth consecutive increase for the S&P, the flagship index remains down 4% since the conflict began.
Economic data released on Monday showed that the US service sector grew at a slower pace than expected in March, with employment contracting and prices, an inflation indicator, reaching their highest level since October 2022.
The highly anticipated March jobs report, released on Good Friday, revealed that the US economy added 178,000 jobs last month, nearly triple the consensus of 60,000, but tempered by a revision in February job losses 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 rose 5.96 points, or 0.09%, to 6,588.65, and the Nasdaq Composite increased by 31.57 points, or 0.14%, to 21,910.75.
Among the S&P 500’s 11 main sectors, communication services recorded the highest percentage gains, while materials lagged behind.
Travel/leisure and aerospace/defense stocks were the top performers.
Trading volume was expected to be low on Monday, with many European and Asian markets closed for the holiday. Soleno Therapeutics shares surged 32.4% after Neurocrine Biosciences agreed to acquire the rare disease drugmaker for $2.9 billion in cash.
The rise in Bitcoin prices boosted the US-listed shares of cryptocurrency-related companies Coinbase and MicroStrategy by 1.8% and 3.9%, respectively.
Advancing stocks 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 securities rose and 1,843 fell, with advancers outnumbering decliners by a ratio of 1.51 to 1.
The S&P 500 hit 7 new 52-week highs and one new low, while the Nasdaq Composite reached 50 new highs and 56 new lows.
