2026-04-23 22:05
publication
2026-04-23 22:05
After setting new all-time highs on Thursday, the New York Stock Exchange made a tactical retreat. Investors were cautious about the events in the Middle East, where the game for control of the Strait of Hormuz is ongoing.
On Thursday, the S&P500 index dropped by 0.36%, reaching 7,108.40 points. The Nasdaq Composite gave up 0.89% and finished with a score of 24,438.50 points. The Dow Jones industrial average, after losing 0.36%, ended the day at 49,310.32 points.
In this way, the S&P500 stayed close to its all-time record, even slightly improving it during Thursday's session. This year's rate of return on this benchmark is 3.7%, despite the most severe oil crisis in nearly half a century. Also on Thursday, the situation in the Middle East focused the attention of financial markets. Iran wants to collect tolls on ships passing through the Strait of Hormuz, which may complicate peace negotiations and unblocking the strait.
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At the same time, it is said that the main sea route through Hormuz remains mined and that it may take many months to clear it. Probably no one knows what it really is. The sentiment was not improved by media reports about alleged attacks on Tehran, which would constitute a violation of the ceasefire. All this seems to be information noise, the truth of which cannot be verified.
– We have had a significant rally behind us and there are people who want to limit their exposure and using the war as an excuse is not a bad excuse – admitted Jay Hatfield, head of Infrastructure Capital Advisors in New York, speaking for Reuters.
The American stock market has made a solid recovery after the February-March correction. Since the March low, the S&P500 has already gained over 12% and is again setting new bullish highs. This increase was based not only on improved sentiment around Uncle Sam's Middle Eastern war, but primarily on expectations related to the strong results of large listed corporations.
So far, 123 companies included in the S&P500 index have published reports for the first quarter. In 82% of cases, financial results turned out to be better than analysts' expectations. Since the beginning of April, the latter have managed to increase the expected dynamics of corporate profits from 14.4% to 15.6% y/y.
However, quarterly results were not always appreciated by investors. On Thursday, IBM's shares fell by 8.3%, with disappointing revenue growth. The price of the IT company ServiceNow dropped by over 17% after the publication of its quarterly report.
However, this is nothing compared to the nearly 50 percent discount of Avis Budget Group. This is how the epic short squeeze on the shares of the well-known car rental company ended, which had inflated the company's share price by over 560% over the previous month.
K.K
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