NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As WTI Oil Dives 5%

The UAE port of Fujairah was able to restart operations after a drone strike, which was bearish for oil markets. Iran-linked vessels were able to pass through the Strait of Hormuz, but the world’s key oil route remained shut for most ships. President Trump said that ships must be willing to pass through the Strait, but it looks that most owners and crews are not ready to take risks.

IEA’s Executive Director Fatih Birol said that the organization could release more oil from reserves if necessary. High oil prices are bearish for most stocks, so SP500 is moving higher when oil markets show signs of weakness.

Today, traders had a chance to take a look at the NAHB Housing Market Index report for March. The report indicated that NAHB Housing Market Index increased from 37 in February to 38 in March, compared to analyst forecast of 37.

According to the report, current sales conditions increased from 41 in February to 42 in March. Sales expectations in the next six months grew from 47 to 49. while traffic of prospective buyers increased from 22 to 25.

NY Empire Manufacturing Index declined from 7.10 in February to -0.20 in March, compared to analyst consensus of 3.2. Industrial Production increased by +0.2% month-over-month in February, while analysts expected that it would grow by +0.1%.

The rally was broad, and all market segments moved higher in today’s trading session. Interestingly, energy stocks have also managed to gain ground despite strong pullbacks in natural gas and oil markets.