Morning Market Brief | Apr 2, 2026 | Stocks rally despite the Iranian oil shock

Morning Market Brief | Apr 2, 2026 Market Sentiment & Geopolitics Equities Rally on Peace Hopes: U.S. markets are kicking off the second quarter with a rally, driven by growing optimism that the military conflict in Iran may be nearing a conclusion . Presidential Address: President Trump is scheduled to deliver a primetime address to the nation tonight at 9:00 PM ET . He is expected to provide an operational update and reiterate a timeline of two to three weeks to wrap up military operations . Strait of Hormuz: Despite the market optimism, the Strait of Hormuz remains virtually closed, and Iran has pushed back against claims that it requested a ceasefire . In response to the ongoing blockade, the UAE and Bahrain are reportedly preparing a UN Security Council resolution to assist in forcefully reopening the maritime chokepoint . The Economy & The Fed Inflation & Oil Shock: The closure of the Strait of Hormuz has created a severe global supply shock, keeping Brent crude oil prices hovering above $100 a barrel and domestic gasoline prices over $4 a gallon . Rate Hikes on the Table: The resulting inflationary pressure has completely shifted the Federal Reserve's trajectory; rate cuts have been taken off the table for 2026, and the central bank is now actively considering rate hikes . Fed Transition: This complex monetary environment awaits Kevin Warsh, who is expected to take over as Fed Chair from Jerome Powell in May . Corporate News & Equities SpaceX IPO: Elon Musk's space exploration company has confidentially filed for an IPO . The listing, which could happen as soon as June, is seeking to raise up to $75 billion at a historic valuation of $1.75 trillion or more . Apple Turns 50: Apple is celebrating its 50th anniversary today . While the company has lagged behind rivals in the generative AI race, it is pushing to close the gap through a multi-year partnership with Google to use its Gemini models to power a revamped Siri . Intel Surges: Shares of Intel jumped roughly 9% after the company agreed to pay $14.2 billion to buy back half of a semiconductor plant in Ireland that it had previously sold to Apollo Global Management . Nike Plunges: Nike shares tumbled over 15% after the company issued a gloomy revenue outlook . The footwear giant is battling elevated international inventories, a weak macroeconomic environment in China, and an ongoing struggle to turn around its Converse brand . Record M&A: Dealmaking had its strongest first quarter on record, tallying $1.3 trillion globally . Among the quarter's notable deals is McCormick's complex transaction to acquire the bulk of Unilever's food business . Cryptocurrency & Regulation Crypto in Retirement: The U.S. Labor Department has formally proposed a rule change that would allow alternative assets, including cryptocurrencies, to be offered in 401(k) retirement plans . Crypto Mortgages: Fannie Mae announced it will begin accepting mortgages backed by crypto assets, a major step toward mainstream digital asset integration in the housing market . Space Exploration Artemis II Launch: NASA's Artemis II mission is poised to launch from the Kennedy Space Center tonight at 6:24 PM ET . A crew of four astronauts will embark on a 10-day orbit around the moon, marking humanity's first return to the lunar vicinity in more than half a century .