Stocks recover from early losses and close with a weekly gain. US oil tops $110 a barrel

The S&P 500 rose 7.37 points, or 0.1%, to 6,582.69. Several days of solid gains this week helped the benchmark index notch a 3.4% gain for the week. That’s the first weekly gain since the conflict started for index at the heart of many 401(k) accounts. Stock markets will be closed for Good Friday.

The Dow Jones Industrial Average fell 61.07 points, or 0.1%, to 46,504.67. The Nasdaq composite rose 38.23 points, or 0.2%, to 21,879.18. Both indexes also notched weekly gains.

A barrel of U.S. crude oil rose 11.3% to $111.54, though prices rose close to $114 at one point during the day. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel. Crude oil prices have been the main force behind the sharp swings for stocks globally. Shipping traffic has been severely curtailed in the Strait of Hormuz, where a fifth of the world’s traded oil passes through during peacetime.

Crude oil prices had been sliding back toward $100 per barrel prior to Trump’s address on Wednesday. The U.S. only relies on the Persian Gulf for a fraction of the oil it imports, but oil is a commodity and prices are set in a global market. A disruption anywhere affects prices everywhere.

Stocks have been broadly sliding since the war began, with indexes often rising and falling sharply along with statements from Trump about the direction of the war. Just on Monday, the S&P 500 briefly neared a 10% drop from its record, a steep-enough fall that professional investors have a name for it: a “correction. The index gained ground Tuesday and Wednesday on hope that the war could end soon.

“For markets, a prolonged conflict increases the risk of sustained pressures on inflation, global growth, interest rates, and equity valuations,” wrote Adam Turnquist, chief technical strategist for LPL Financial, in a note to investors.

Airlines and other travel-related companies were among the biggest losers on Thursday. United Airlines fell 3% and Carnival shed 3.5%.

Tesla fell 5.4% after a report showing that sales over the past three months fell short of analysts' expectations.

Several big technology stocks gained ground to help counter losses elsewhere in the market. Intel jumped 4.9% and Advanced Micro Devices rose 3.5%.

Treasury yields remained relatively steady in the bond market. The yield on the 10-year Treasury fell to to 4.30% from 4.32%.

Wall Street is worried that higher energy prices are adding to already stubbornly high inflation. Rising fuel prices take a bigger chunk out of consumers' wallets in several ways. Directly, gasoline prices in the U.S. have surged 36 percent from a month ago to average $4.08 per gallon, according to the auto club AAA.

Indirectly, rising fuel prices tend to make a wide range of services and goods more expensive. Flights become more expensive as airlines raise ticket prices to offset rising fuel costs. Consumer goods become more expensive as shipping and transportation costs rise.

Inflation has been stubbornly above the Federal Reserve's 2% target. The war and its corresponding surge in energy prices effectively pushes inflation higher and that has dashed hopes for the Fed to cut interest rates. Wall Street had hoped for the central bank to cut rates in order to help offset a weakening job market. Lower interest rates could help stimulate the economy by lowering borrowing costs, but they also risk worsening inflation.

Traders came into 2026 forecasting several cuts to the Fed's benchmark interest rate, which influences rates for mortgages and other loans. They are now expecting the benchmark rate to remain steady this year.

The war has also caused an anomaly of sorts in the oil market. Brent crude oil futures are typically priced higher than those for U.S. crude oil, but the war flipped that on its head. Because of the supply constraints, the sooner a buyer needs a barrel of oil, the more they’ll have to pay. Right now, the most actively traded futures contract for U.S. crude oil is for delivery in May, while the Brent futures contract is for delivery in June. That shorter timeframe is why U.S. crude is trading for more than Brent.

Tom Kloza, chief energy adviser at Gulf Oil, points out that a buyer who needs oil immediately will pay about $3 to $5 a barrel above the futures price for U.S. crude and an even steeper premium for Brent.

An earlier version of this story incorrectly reported the weekly percentage change for the S&P 500.

Associated Press journalists Chan Ho-Him and Matt Ott contributed to this report.