The S&P 500 (^GSPC +0.44%) rose 0.44% to 6,611.83, the Nasdaq Composite (^IXIC +0.54%) added 0.54% to 21,996.34, and the Dow Jones Industrial Average (^DJI +0.36%) gained 0.36% to 46,669.88 as cautious ceasefire hopes balanced volatile oil markets.

Market movers

Tesla (TSLA 2.15%) extended its recent declines after JPMorgan (JPM +0.80%) warned of significant potential downside. In contrast, Micron Technology (MU +3.15%) climbed on upbeat analyst sentiment.

Kratos Defense & Security Solutions (KTOS +9.97%) soared following an analyst upgrade as well as resilience in defense stocks. Plug Power (PLUG +11.62%) gained after landing a new hydrogen contract in Canada.

Invesco (IVZ 5.22%) tumbled after rival BlackRock (BLK 0.75%) filed for a new Nasdaq‑100 exchange-traded fund (ETF). The move indicates intensifying competition in the ETF market.

What this means for investors

The Iran war again drove markets today, as traders weighed hopes of a ceasefire against warnings of escalation. Major indexes posted moderate gains, despite oil prices remaining elevated. Financial services and consumer cyclicals were among the top-performing sectors, while healthcare and materials stocks sank.

Investors are watching for signs of progress toward reopening the Strait of Hormuz, as concerns grow about the economic impact of high energy costs stemming from continued disruption. JPMorgan CEO Jamie Dimon warned that higher inflation could pull down asset prices in his annual shareholder letter.

Today’s report from the Institute for Supply Management was the highest since October 2022, an early indication of the inflationary force of the conflict. Further information will come from Friday’s Consumer Price Index data.