Dow falls, Nasdaq rises, Brent above $109: what's happening in the markets

The main U.S. stock indices began the first trades after a three-day weekend in a multidirectional manner. "Technological" index Nasdaq Composite was rising at the moment by almost 0.5%, while the index of "blue chips" Dow Jones mainly kept in the red zone. Brent crude oil traded at $109 per barrel, gaining slightly, although it dipped to $107 during the day.

- The broad market index S&P 500 rose by 0.3% in the first minutes after the opening of trading, but fluctuated a bit and at moments went into a small minus.

- The blue-chip index Dow Jones Industrial Average was down 0.3%, but then also managed to switch to growth.

- The Nasdaq Composite Technology Sector Index was adding about 0.5% before slowing slightly.

- The Russell 2000 index of small and mid-capitalization companies was up 0.1%.

- The CBOE Volatility Index, known as the Wall Street Fear Index, was up 5%, above 25 points. The psychological mark indicating high volatility is considered to be 20 points.

- June futures for Brent crude were up 0.1% to $109 per barrel, while May contracts for U.S. WTI crude were up 0.7% at $112.4 per barrel.

- Gold was little changed in price at $4673.45 per troy ounce.

- Bitcoin was adding more than 4% to about $69,500, the CoinGecko service shows.

Investors on Monday focused on signals about diplomatic efforts to reach a cease-fire between the U.S. and Iran, Bloomberg writes.

Washington, Tehran and a group of regional mediators are trying to reach a 45-day truce agreement, Axios reported, citing sources. Reuters later quoted its interlocutor as saying that Pakistan had handed Iran and the United States a framework for a cessation of hostilities that the two sides could agree on as early as April 6. At the same time, an Iranian foreign ministry spokesman said "no reasonable person" would agree to the proposed ceasefire without guarantees that the attack would not be repeated, Bloomberg reported. U.S. President Donald Trump over the weekend issued threats to destroy Iranian power plants.

"This combination of pressure and negotiations leaves the market without a sustainable fulcrum. The rebound looks logical from a tactical point of view, but does not yet indicate a sustained improvement in the macroeconomic and financial outlook," said IG Group senior market analyst Sergio Avila. His quote is quoted by Bloomberg.

The market was also supported by signs that some ships from the Persian Gulf continue to pass through the Strait of Hormuz - the most important artery for oil and gas supplies: traffic through it has increased to the maximum levels since the beginning of the war, Bloomberg writes. Over the weekend, 21 ships passed through the strait - the highest in two days since early March, when traffic, in contrast, was declining, the agency notes. Of those vessels, 13 headed to the Arabian Sea, the agency specifies. Despite the increase, the volume of traffic remains well below pre-war levels, when about 135 ships passed through the strait daily. Nevertheless, more and more countries are seeking transit opportunities: last week, two container ships associated with China crossed the strait at the second attempt, two vessels associated with Japan also passed through, Bloomberg writes.

"Traders are focused on reports that the US, Iran and regional mediators are discussing the terms of a possible 45-day ceasefire. This shows how interested investors are in de-escalating the conflict with Iran, which is now shaping the general risk-aversion mood in markets," Markets Live strategist Mark Cranfield said. He added that if Trump later on Monday, April 6, speaks out against expectations of a truce, this positive mood could quickly shift. "For now, however, amid low liquidity, this remains the key theme for investors," he added.

As the conflict with Iran enters its sixth week, continued uncertainty over the timing of its resolution is likely to continue to weigh negatively on market sentiment, according to John Stoltzfus, chief investment strategist at Oppenheimer Asset Management. His opinion is published by CNBC.

"We remain positive on the markets and the U.S. economy this year, with 'resilience' remaining a key factor, giving the market room to continue to grow through the so-called 'wall of worry,'" he added.

This article was AI-translated and verified by a human editor