Traders work on the floor of the New York Stock Exchange during morning trading on April 08, 2026 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 was relatively unchanged on Monday as investors hoped that a deal would eventually be struck between the U.S. and Iran.
The broad market index hovered around the flatline, while the Nasdaq Composite rose 0.2%. The Dow Jones Industrial Average shed 247 points, or 0.5%.
Goldman Sachs was a sore spot in the session. Shares were down 4% despite the bank’s strong overall earnings after it recorded disappointing trading results in its fixed income unit.
The moves come after President Donald Trump announced a blockade of the Strait of Hormuz, with peace talks between the U.S. and Iran over the weekend ending without a deal. The blockade of all maritime traffic in and out of Iran’s ports went into effect Monday. U.S. Central Command said the U.S. will not block vessels using the strait to get to non-Iranian ports.
The breakdown of negotiations in Islamabad reignited worries that the Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide. West Texas Intermediate crude oil jumped 5% to above $101 per barrel. International Brent popped 5% to above $100 a barrel.
Vice President JD Vance left Islamabad without a deal with his Iranian counterparts, citing their unwillingness to stop the pursuit of nuclear weapons. But both sides appear farther apart than just that issue, with Iran demanding control of the Strait of Hormuz, war reparations and the release of frozen assets.
Mediators from Pakistan, Egypt and Turkey will continue talks with the two nations over the coming days, Axios reported, citing a regional source and a U.S. official.
Trump, who announced the naval blockade after talks broke down, is weighing resuming military strikes, the Wall Street Journal reported, citing officials familiar with the situation.
“Investors are now back to the drawing board trying to reassess the fair value of stocks now that it’s clear that there is no end in sight to the conflict in the Middle East,” said Clark Bellin, president and chief investment officer at Bellwether Wealth. “The Strait of Hormuz is key for oil prices and overall market sentiment, and it’s clear that there will be more saber rattling over this waterway between the U.S. and Iran this week.”
Hopes for a swift end to the war helped all three major benchmarks post their best week since November, following the announcement of a two-week ceasefire between the U.S. and Iran. The S&P 500 rallied 3.6% last week, while the Nasdaq jumped about 4.7%. The Dow gained 3%.
