Rally Fades: S&P 500 Drops, Hormuz Risks Remain
US stocks fell on Thursday (April 9), paring some of the previous session's sharp rally, as market participants continued to monitor developments in the Middle East following the two-week US-Iran ceasefire agreement. The S&P 500 and Nasdaq each fell 0.2%, while the Dow fell 0.3%.
These declines came after all three major indexes surged more than 2% on Wednesday, with the Dow posting its best day since April 2025, fueled by risk-on euphoria after Trump agreed to a pause in attacks on Iran. However, the durability of the ceasefire was again questioned after Iranian Parliament Speaker Mohammad Bagher Ghalibaf accused the US of violating the agreement, citing continued Israeli attacks in Lebanon, drone incursions into Iranian airspace, and the denial of uranium enrichment rights.
Trump also asserted that US troops would remain deployed around Iran until Tehran complies with the "real agreement," warning that violations would be met with a larger military response. On the ground, traffic in the Strait of Hormuz has reportedly not recovered significantly since the agreement was announced, with activity appearing to be primarily from dry cargo vessels, rather than oil carriers—restraining market confidence that energy supply risks have truly eased.
Source: Newsmaker.id
