Wall Street delivered a wild ride on Thursday, April 2, 2026, as midday trading exposed deep cracks in investor confidence. The Dow Jones Industrial Average slipped in volatile trading as oil prices surged following President Donald Trump’s remarks that the Iran war would continue for weeks.1 What started as a morning selloff briefly flipped into a recovery before doubt crept back in, leaving traders caught between headlines and hope.
The session told a bigger story: geopolitical risk is back in the driver’s seat, and the lunch hour proved once again that a single headline can move billions in capital within minutes.
Oil Price Shock Rattles the Trading Floor
The biggest force behind Thursday’s midday chaos was crude oil.
West Texas Intermediate crude futures settled up 11.41% at $111.54 per barrel, the highest level since June 28, 2022.1 Brent crude futures settled 7.78% higher at $109.03 per barrel.1
The trigger was President Trump’s nationally televised address Wednesday evening. Stocks fell after President Donald Trump told the nation he expects the war in Iran to last another two to three weeks, stating that the U.S. is “on track to complete all of America’s military objectives shortly, very shortly.”2
The entire market was expecting Trump’s address to be de-escalatory. Instead, he said the war will continue until late April, threatened to strike Iranian power plants, and said Iran will be sent back to the “stone age.”3
midday stock market movers oil price surge April 2026 Wall Street
Key oil price levels to watch: The $108 to $109 zone is now acting as a short-term floor. Resistance sits near $112 to $115, with the prior conflict high of $119 representing the bull case ceiling.
Iran is still not giving up control of the Strait of Hormuz.4 That keeps the global energy supply equation under pressure and every midday move tied to oil headlines.
Energy Stocks Soar While Airlines Sink
The sector split on Thursday was sharp and telling.
Oil stocks rose after Trump’s address. Exxon Mobil (XOM) jumped nearly 3%, Chevron (CVX) rose more than 2%, Devon Energy (DVN) gained more than 3%, and ConocoPhillips (COP) and Occidental Petroleum (OXY) both rose more than 3%.5
On the other side of the trade, airlines took a hit. Shares in airlines sank in early trading. Delta Air Lines (DAL), United Airlines (UAL), and Alaska Air (ALK) all fell 3% or more.5
The equities rallying today come out of the real estate, energy, and utilities sector, a mix of equities you’d be betting big on if you’re betting on greater geopolitical uncertainty, higher oil prices for longer, and recessionary activity.2
That rotation tells you something important. Consumer discretionary stocks are getting hammered, which is generally the opposite of what you’d want to see if you really buy that the Iran war is over in a few short weeks.2
| Sector | Direction | Key Movers |
|---|---|---|
| Energy | Up | ExxonMobil, Chevron, Devon Energy, ConocoPhillips |
| Airlines | Down | Delta, United Airlines, Alaska Air |
| Consumer Discretionary | Down | Broad sector weakness |
| Real Estate/Utilities | Up | Defensive rotation play |
Company Headlines That Moved the Tape
Beyond oil, several individual stocks grabbed attention in midday trading this week and into Thursday’s session.
Shares of Eli Lilly rose 5% in midday Wednesday trading after the FDA approved its GLP-1 pill Foundayo. The pill will start shipping from the company’s direct-to-consumer platform LillyDirect on Monday.6 That approval marks a major milestone in the weight-loss drug race.
Shares in satellite communications company Globalstar rose more than 12% following a news report that Amazon (AMZN) was in talks to acquire the company.5 A potential deal would bolster Amazon’s low-Earth-orbit satellite ambitions as it looks to catch up with SpaceX’s dominant Starlink network.7
Not every headline lifted stocks. Nike’s stock slumped 14% after its North American revenue came in at $5.03 billion, while analysts surveyed by LSEG had expected $5.04 billion.8 The stock was also pressured by downgrades from JPMorgan, Bank of America and Goldman Sachs.8
Memory chip stocks also had a strong week. Investors’ favorite group in 2026 continued their rebound on Wednesday after a hefty sell-off, as a number of Wall Street firms issued fresh notes on the group.8 Sandisk was up 10%, while Western Digital rose 11%. Seagate Technology gained more than 8% and Lam Research jumped nearly 5%. Micron added 10% as Cantor Fitzgerald touted the stock as a top pick.8
How the Session Recovered From Its Lows
The most dramatic moment came when all three major indexes clawed back from deep losses.
At their lows, the Dow was down more than 600 points, or 1.4%, while the S&P 500 and Nasdaq were down 1.5% and 2.2%, respectively.1
Then a headline changed everything.
The three major indexes ripped higher from their steep losses earlier in the day to briefly turn positive after Iranian state media said that the Middle Eastern country is working with Oman on a protocol to “monitor” ships passing through the Strait of Hormuz.1
By the close, the blue-chip Dow declined 61.07 points, or 0.13%, closing at 46,504.67. The S&P 500 advanced 0.11% to end at 6,582.69, and the Nasdaq Composite gained 0.18% to settle at 21,879.18.1
That kind of intraday swing tells you the market is extremely headline-sensitive right now. One report from Iranian state media was enough to turn a 600-point loss into a near-flat close.
For context, even with the week’s volatile trading, the major averages posted gains over the period. The S&P 500 advanced 3.4% week to date, while the Dow rose nearly 3%. The Nasdaq outperformed and climbed 4.4%.1
What Investors Should Watch Next
Thursday marks the last trading day of the shortened week, as markets are closed for Good Friday. March’s jobs report is set for release on Friday morning, however.1 That means investors will digest the employment data over the long weekend, and Monday could open with a gap in either direction.
Several risk factors are worth tracking:
- Oil prices: Oil prices will likely “stay higher for longer.” Even if they do eventually come down, gas prices would still take longer to do so, meaning there’s going to be a “continued inflationary impact on the economy.”1
- Inflation concerns: Analysts at Bank of America Securities said they expect soaring energy prices to push headline inflation to nearly 4% year-over-year in the coming months.9
- Rate hike risk: Surging energy prices, rising import costs and mounting stagflation concerns are pushing markets to consider that the Federal Reserve’s next move could be a rate hike. Traders in the futures market pushed the probability of a rate increase by the end of 2026 to 52%, the first time it has crossed the 50% threshold.10
- Strait of Hormuz: Any update on shipping lanes could swing markets overnight.
- Earnings season ahead: Expected earnings from Delta Air Lines (DAL), Constellation Brands (STZ), and Applied Digital (APLD) arrive on April 8.5
Options market data adds further concern. The put-call ratio has been trending higher, indicating that traders are increasingly hedging against downside risks.11 That defensive posture tells you the smart money is not betting on a quick bounce.
As one market analyst put it: “Markets are increasingly pushing back against the idea that Trump’s latest address signals de-escalation. Price action suggests the opposite.”2
Thursday’s wild session was a reminder that in this market, the midday tape can rewrite the entire day’s story in minutes. Whether you are a day trader scanning for quick moves or a long-term investor watching from the sidelines, the message is the same: respect the volatility, verify the headline, and do not chase. The next few weeks could define the direction of markets for the rest of 2026. Share your thoughts in the comments below. What is your next move in this environment
