Stocks shrug off war

United States stocks have wiped out their Iran-war losses, with the Standard & Poor’s 500 index back above its prewar level and the Invesco QQQ Trust trading above where it stood on April 2. (bloomberg.com) (finance.yahoo.com) The QQQ exchange-traded fund closed at $584.98 on April 2, before the sharp war-driven swings, then rose to $617.39 on April 13 and traded at $626.58 by 1:03 p.m. Eastern on April 14. (finance.yahoo.com) Reuters reported on April 14 that Wall Street’s main indexes advanced again on hopes for renewed United States-Iran talks, while Bloomberg reported a day earlier that the Standard & Poor’s 500 had erased all of its losses since the war began. (msn.com) (bloomberg.com) The move marks a split across markets. Reuters said United States stocks have recovered, while oil, bonds and gold still reflect concern about Middle East supply risk and inflation. (msn.com) Part of the rebound came after a two-week ceasefire announced on April 7 cut the war premium in crude prices. Reuters reported on April 8 that oil fell below $100 a barrel after President Donald Trump agreed to suspend strikes, subject to reopening the Strait of Hormuz. (money.usnews.com) (yahoo.com) Stocks also got help from inflation data on April 14. The Bureau of Labor Statistics said the Producer Price Index measures prices received by domestic producers, and market coverage of the March report said wholesale prices rose less than expected even with an 8.5% jump in the energy index. (bls.gov) (upi.com) That combination — lower oil than feared, softer producer inflation and the start of earnings season — has given traders a reason to buy technology shares again. CNBC said on April 13 that the major averages rallied as earnings season began, even after weekend negotiations broke down. (cnbc.com) The QQQ matters here because it tracks the Nasdaq-100, a basket of 100 large nonfinancial companies listed on Nasdaq, and it is heavily weighted toward big technology names. Invesco says the fund is designed to follow that index and had a market value reported as of April 8. (invesco.com) Not everyone reads the rebound as all-clear. CNBC reported on April 10 that Barclays said stocks looked more hopeful than oil, with equities signaling a smoother ending to the conflict than energy markets were pricing. (cnbc.com) For now, the tape shows buyers stepping back into risk. The clearest marker is QQQ: from $584.98 before the conflict shock to $626.58 in Tuesday trading, it has moved beyond recovery and into new ground. (finance.yahoo.com)