{"url":"https://www.bloomberg.com/news/articles/2026-04-17/wall-street-rushes-to-price-out-war-damage-as-stocks-hit-records?srnd=homepage-uk&embedded-checkout=true","title":"Wall Street prices out war damage amid stock records","domain":"bloomberg.com","imageUrl":"https://images.pexels.com/photos/5831666/pexels-photo-5831666.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"Wall Street traders","category":"Business","language":"en","slug":"8f7c64d0","id":"8f7c64d0-0082-4cee-a99c-652a8831e4fe","description":"Wall Street traders price out limited damage from the ongoing US-Iran war as major indexes hit fresh records.","summary":"## TL;DR\n- Wall Street traders price out limited damage from the ongoing US-Iran war as major indexes hit fresh records.\n- S&P 500 closes at **7,022.95**, up 0.8% and above its prior January peak after erasing nearly **10%** war-related drop.\n- Markets bet on quick resolution and oil flow resumption despite strategists' warnings of lasting economic scars.\n\n## The story at a glance\nWall Street rushes to adjust prices lower for war damage from the US-Iran conflict, pushing the S&P 500 and Nasdaq to record highs amid ceasefire hopes. Traders, retail investors, and strategists at firms like Morgan Stanley cite resilient earnings and expected de-escalation. This comes now as the war enters its seventh week, with recent truce signals and Strait of Hormuz talks easing oil fears. The S&P 500 had corrected nearly 10% in late March before rebounding over 10%.\n\n## Key points\n- S&P 500 rises **0.8%** to **7,022.95**, first close above **7,000** and eclipsing January record; Nasdaq up **1.6%** to **24,016**.\n- Indexes recover all losses since late February war start, up more than **10%** from March low in two weeks on peace bets.[[1]](https://www.bloomberg.com/news/articles/2026-04-16/retail-traders-look-past-war-angst-and-race-back-into-stocks)[[2]](https://www.bnnbloomberg.ca/markets/dow-jones/2026/04/15/wall-street-flirts-with-a-record-after-adding-to-its-weekslong-rally)\n- Oil spikes earlier to record highs but steadies near **$85-$95** as Iran signals Hormuz reopening for commercial traffic.\n- Retail traders drive rally, ignoring war angst; trading intensity hit records earlier from uncertainty.[[3]](https://www.bloomberg.com/news/articles/2026-04-07/-freak-out-indicator-soars-to-record-as-war-spurs-trader-angst)\n- Strategists warn war scars inflation, energy, and Fed policy; no quick fix even with truce, but earnings shield big caps.\n- Tech leads gains—Microsoft up **4%**, Tesla **7%**—on AI strength; energy sector lags as oil falls.\n\n## Details and context\nThe US-Iran war began late February 2026 with strikes, causing initial **10%** S&P drop, oil over **$100**, and global asset swings. A fragile ceasefire and talks lifted sentiment, with Trump signaling end is \"very close.\" Markets now price minimal long-term hit, focusing on corporate resilience.\n\nWar disrupted Persian Gulf oil, but Hormuz moves and tanker reversals hint at normalization. IMF cuts growth forecasts on inflation risks; ECB, Fed face pressure but markets price fewer hikes.\n\nPast Middle East conflicts rarely dented US stocks long-term—average **4%** dip, quick rebound—bolstering current optimism.\n\n## Key quotes\n\"Iran's declaration that commercial ships can pass through the Hormuz strait strengthens the positive momentum in equities.\" — Victoria Fernandez, Crossmark Global chief market strategist.[[4]](https://www.swissinfo.ch/eng/wall-street-extends-april-surge-on-peace-prospects:-markets-wrap/91270768)\n\n## Why it matters\nWar risks linger in energy shocks and inflation, potentially slowing global growth even post-truce. Investors see contained fallout for 401(k)s and portfolios, with tech earnings offsetting damage; businesses face higher costs but stocks reward optimism. Watch US-Iran talks and Hormuz flows—breakdown could reverse rally, though history suggests resilience.","hashtags":["#stocks","#markets","#iran","#war","#oil","#finance"],"sources":[{"url":"https://www.bloomberg.com/news/articles/2026-04-17/wall-street-rushes-to-price-out-war-damage-as-stocks-hit-records?srnd=homepage-uk&embedded-checkout=true","title":"Original article"},{"url":"https://www.bloomberg.com/news/articles/2026-04-16/retail-traders-look-past-war-angst-and-race-back-into-stocks","title":""},{"url":"https://www.bnnbloomberg.ca/markets/dow-jones/2026/04/15/wall-street-flirts-with-a-record-after-adding-to-its-weekslong-rally","title":""},{"url":"https://www.bloomberg.com/news/articles/2026-04-07/-freak-out-indicator-soars-to-record-as-war-spurs-trader-angst","title":""},{"url":"https://www.swissinfo.ch/eng/wall-street-extends-april-surge-on-peace-prospects:-markets-wrap/91270768","title":""}],"viewCount":2,"publishedAt":"2026-04-17T21:04:59.953Z","createdAt":"2026-04-17T21:04:59.953Z","articlePublishedAt":"2026-04-17T00:00:00.000Z"}