Chapter 1: What is the main topic discussed in this episode?
Public.com presents The Rundown, your daily market update in under 10 minutes. My name is Zaid Admani, and today is Wednesday, April 8th. In today's episode, we'll tell you how markets are reacting to the US-Iran ceasefire.
We'll also break down Delta's earnings and why your flights are about to get more expensive. Then we dive into the iPhone rumor that tanked Apple stock yesterday. Finally, stick around to the end of the show to find out why used car prices are surging. We got a great show for you today. Let's go. Yesterday was a pretty intense day for the markets and frankly, the whole world.
Everyone was on edge as President Trump's 8 p.m. deadline for Iran to reopen the Strait of Hormuz approached. Trump started the day turning up the rhetoric, warning that a whole civilization will die tonight if Iran didn't make a deal. Now, you would think the market would have freaked out over those comments, but they barely flinch.
Chapter 2: How did the Iran ceasefire impact global markets?
Stocks were in the red slightly for most of Tuesday, but they got a last minute surge to finish in the green with both the S&P and Nasdaq closing up 0.1%, which is kind of wild when you think about it. I think the entire time the investors didn't believe things would actually escalate and some sort of last minute deal would get worked out. And that's exactly what happened.
About 90 minutes before the deadline, the U.S. and Iran agreed to a two week ceasefire after Pakistan's prime minister asked both sides to stand down. Trump agreed to suspend attacks on Iran and Iran agreed to allow ships and oil tankers to pass through the Strait of Hormuz. So that was a huge development and sigh of relief.
Investors around the world were celebrating stocks in Asia and Europe are surging. And we're in for a big day here in the US as well. Both the S&P and Nasdaq futures are up more than 2% in the pre-market. Oil, on the other hand, is tanking. Oil prices went from $110 a barrel yesterday to around $95 this morning.
And depending on where the price closes today, it could be one of the biggest one-day drops for oil in years. Remember, about 20% of the world's oil supply flows through the Strait of Hormuz, and it's been closed for about a month now. So with it reopening, even temporarily, that's relieving pressure on oil prices. But yeah, I gotta say, I was glued to my timeline yesterday.
It was intense, but the markets got the taco from Trump that they were expecting. It came down to the wire, but it happened. And I think that's why investors were hesitant to be overwhelmingly bearish throughout this war, because things could flip on a dime, just like it did yesterday. Now, that being said, we're still in a pretty fragile situation.
I'm hoping this two-week ceasefire turns into a long-term peace deal, but there are still differences on each side that need to be figured out. So we'll see how the next two weeks go and how the market reacts. I wonder if investors will now fully put this war behind them or continue to be cautious until a full peace deal is in place. Now, we'll see what happens.
Maybe the markets will finally get some calm over the next few days and weeks. Either way, we'll keep you guys updated here daily. But for now, the market is celebrating, so it's a great time to check your portfolio if you haven't in a while. Let's run through some headlines, starting with Delta Airlines.
Delta reported earnings this morning, and the stock is surging thanks to a solid earnings report. And I'm sure falling oil prices are also helping with that. Q1 was solid for Delta revenues were up 9% to $14.2 billion, beating estimates and profits also came in ahead of expectations. And despite the surge in oil prices in March, travel demand remained strong.
Premium tickets were the main driver of the growth jumping 14% in Q1, while main cabin ticket revenue also increased for the first time since 2024. So it seems like despite everything happening in the world, people are still booking their travels. Now, fuel prices are a problem for Delta. The Iran war has caused jet fuel prices to surge 88%.
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