US Stock Market Today: Oil Prices Drop 10% as Dow, S&P 500, and NASDAQ Rally After Strait of Hormuz Reopens

US stocks climbed as lower oil prices supported sectors sensitive to fuel costs and interest-rate expectations. By mid-morning on April 17, the Dow was up 554.22 points, or 1.14%, to 49,136.99. 

The S&P 500 rose 54.59 points, or 0.78%, to 7,095.87, while the NASDAQ gained 252.37 points, or 1.05%, to 24,355.07. The S&P 500 and NASDAQ had already posted record closes on Thursday.

Airline and cruise stocks were among the clearest gainers because lower fuel prices help reduce operating costs. American Airlines and United Airlines each jumped more than 7%, while Carnival and Norwegian Cruise also posted strong gains. 

By contrast, the S&P 500 energy sector dropped 4.8%, with Exxon Mobil and Chevron falling as crude retreated. The move also reflected broader risk appetite. The CBOE Volatility Index fell to a two-month low, showing calmer investor positioning. 

Lower oil prices reduced the immediate concern that the conflict would keep pushing inflation higher. As a result, rate-sensitive parts of the market, including technology and consumer discretionary stocks, drew support. The prospect of softer inflation also revived discussion over whether the Fed may still cut rates by December.