Wall Street closed mostly lower on Thursday, April 2, after President Trump's national address vowing to strike Iran 'extremely hard' reversed gains from the prior session. Oil prices surged as investors unwound bets on a quick resolution to the Middle East conflict.
WTI Crude Spikes to $111.5, Airlines Hit Hard
West Texas Intermediate crude climbed as high as $111.50 per barrel intraday, an 11% gain, before settling at $103.6. Brent crude reached around $108. Fuel-sensitive stocks absorbed the hit immediately: Delta, United, American Airlines, Carnival, Royal Caribbean, and Norwegian Cruise Line all fell between 2% and 4%.
The Dow shed about 0.3% to near 46,400; the S&P 500 dropped 0.1% to 6,582.68; the Nasdaq slipped 0.1% to around 21,800. Tesla led declines among large-cap tech, falling over 5% on weak delivery figures. Most other Magnificent Seven stocks moved lower. Chip and memory names remained volatile amid persistent AI spending concerns.
Defense Stocks Hold Up, Gold Slumps
Defense and aerospace stocks bucked the downturn. The Trump administration's proposed $1.5 trillion defense budget for fiscal 2027, the largest annual increase since WWII, continued drawing capital. Boeing and Caterpillar maintained momentum. Globalstar (GSAT) surged on Amazon acquisition rumors; Nike pulled back on soft consumer data.
Gold futures fell nearly 3% to around $4,680 per ounce. Spot gold traded in the $4,664–$4,695 range. A stronger dollar (up 0.3%) and reduced Fed rate cut expectations weighed on metals. Silver dropped 4%–6% intraday, trading between $70.80 and $72.30.
Bitcoin Slips Below $66K, Crypto Market Cap Shrinks
Bitcoin traded at approximately $67,024 at the Wall Street close, down 1.6% from April 1. It touched a session low near $65,789. Ethereum fell 3%–4% to around $2,059. Total crypto market cap declined about 2% intraday to $2.3 trillion. Bitcoin dominance held near 58%. Solana and XRP also moved lower.
The brief de-escalation rally on April 1 had lifted major indices: the S&P 500 rose 0.7%, the Nasdaq added 1.2%, and the Dow gained 0.5%. Those gains evaporated after Trump's speech. The 10-year Treasury yield slipped below 4.31%. Markets will be closed on Friday for Good Friday, with the March jobs report due as the next major catalyst.