(April 10): Wall Street traders drove stocks higher as oil closed below US$100 ($127.35) after Israel agreed to direct talks with Lebanon, bolstering expectations that a US ceasefire deal will hold.
Equities extended gains into a seventh straight day, with the S&P 500 notching its longest winning run since October. That’s despite a selloff in software shares. US crude settled near US$98 on hopes for a de-escalation in strikes that have prompted Iran to keep the Strait of Hormuz largely blocked.
President Donald Trump said he was “very optimistic” about a deal with Iran, though issues such as Israel’s offensive in Lebanon and the opening of Hormuz remain unresolved.
Israeli Prime Minister Benjamin Netanyahu agreed to hold direct talks with Lebanon, with the focus on disarming Tehran-aligned Hezbollah. Trump has asked him for a scale-back in strikes to ensure the success of negotiations with Iran, NBC News reported.
“Not much matters for the market other than the durability of the ceasefire, shipping volume through the Strait of Hormuz and ultimately, whether a bona fide permanent deal is struck,” said Bradford Smith at Janus Henderson Investors.
That’s all happening at a time when data showed the US economy expanded at a slower pace than previously estimated in the final months of 2025. Consumer spending barely rose in February amid persistent inflation that’s set to accelerate due to the war.
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“Even before the war, inflation pressures were especially acute in health care and financial services,” said Jeff Roach at LPL Financial. “We are a long way off from material improvement.”
The latest figures don’t reflect the recent surge in energy prices, but Friday’s consumer price index will capture some of that impact, noted Bret Kenwell at eToro. Economists project a 0.9% increase in CPI — the sharpest one-month advance since 2022.
A separate report Thursday showed recurring applications for US jobless benefits fell to the lowest level in almost two years, adding to evidence of stabilization in the labor market.
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“We still see low numbers of those filing for unemployment benefits,” Roach said. “The labor market is holding steady amid a slowdown, which gives the Fed some time to wait.”
Uploaded by Isabelle Francis
