Stocks End Little Changed as Oil Swings and Strait of Hormuz Tensions Drive Volatility

U.S. equities finished little changed after a volatile session marked by rapid swings in oil prices and a steady flow of geopolitical headlines tied to the conflict involving Iran. The S&P 500 slipped 0.2%, the Nasdaq Composite finished flat, and the Dow Jones Industrial Average edged down 0.1%. Small- and mid-cap stocks followed a similar pattern, with the Russell 2000 losing 0.2% and the S&P MidCap 400 falling 0.5%.

Energy markets once again dominated investor attention. Oil prices continued their retreat after comments from President Donald Trump suggested the conflict in Iran could be approaching a resolution. The president also floated the idea that the United States could potentially “take over” the Strait of Hormuz, a remark that contributed to the sharp drop in crude prices that began late yesterday.

Crude extended its decline early in the session, though the relief rally in equities was initially muted as investors questioned whether tensions in the region were truly easing. Reports indicated that Iranian officials warned the blockade of the Strait of Hormuz would remain in place unless U.S. and Israeli military strikes stop.

Markets gained momentum roughly an hour after the open when reports surfaced that the International Energy Agency had called an emergency meeting with member nations to review global supply conditions and discuss the possible release of strategic reserves to stabilize energy markets.

However, the day’s steady flow of headlines kept volatility elevated. U.S. Energy Secretary Chris Wright stated on social media that the U.S. Navy had escorted a tanker through the Strait of Hormuz, though later reports cast doubt on that claim while confirming that a Ghana-flagged vessel had successfully navigated the waterway.

Further uncertainty emerged in the afternoon after reports that U.S. intelligence observed signs that Iran may be preparing to deploy naval mines in the shipping lanes of the strait—one of the world’s most critical energy transit routes. The development reinforced the fragile nature of the situation even as oil prices continued to fall.

By the close, crude oil futures had dropped sharply, settling down $10.88, or 11.5%, at $83.85 per barrel.

Despite the sharp decline in oil, the energy sector still finished as the market’s worst performer, falling 1.3% and extending its losses for the week.

Health care stocks also lagged. Centene was among the weakest performers after its chief executive warned that membership declines in Affordable Care Act plans could be worse than previously expected. Utilities posted similar losses as defensive sectors struggled to find traction.

Technology stocks briefly led the market during the morning as semiconductor shares advanced, though much of that strength faded later in the session. The broader chip group still managed a modest gain, but weakness in software companies offset the move. The software space came under pressure ahead of earnings from Oracle, which weighed on the sector.

Communication services delivered the day’s strongest sector performance, albeit with only a modest gain. Meta Platforms and Alphabet provided support, helping the sector outperform even as other components declined sharply.

Overall, market losses were widespread but relatively mild. Only the energy sector recorded a decline greater than 1%, reflecting a market that remained cautious rather than outright bearish.

Still, the late-day reports that Iran may be preparing to deploy naval mines in the Strait of Hormuz underscored the fragile geopolitical backdrop. Even with oil prices pulling back sharply, the possibility of disruptions to one of the world’s most critical shipping lanes continues to leave markets highly sensitive to developments in the region.

Our FTinvest 11 model portfolio declined 0.92% to close at 982.47, giving back most of the previous session’s rebound and extending the portfolio’s recent pullback. The index continues to move further away from its all-time high of 1,039.51, reflecting ongoing volatility in early March.

Despite the recent pressure, FTinvest 11 remains well above the levels seen at the start of the year and continues to hold a solid year-to-date gain. The portfolio’s value-driven framework remains intact as it navigates this corrective phase following the strong rally earlier in 2026.