Stocks End Mixed on Report of Merchant Ship Hit in Hormuz… WTI Rebounds 4% [New York Market Briefing]

Major indexes on Wall Street closed mixed. Risk appetite, which had been supporting gains, deteriorated after news that Iran attacked a merchant ship in the Strait of Hormuz sent international oil prices higher.

On the 11th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 289.24 points (0.61%) from the previous session to 47,417.27, the Standard & Poor’s (S&P) 500 slipped 5.68 points (0.08%) to 6,775.80, and the Nasdaq Composite rose 19.03 points (0.08%) to 22,716.13.

All three major indexes opened higher, but they lost momentum after reports that three vessels near Iran were struck in succession by projectiles believed to be launched by Iranian forces.

Of the three ships—registered in Thailand, Japan, and the Marshall Islands—the Thai-flagged cargo ship was confirmed to have been hit by Iran’s Islamic Revolutionary Guard Corps in the Strait of Hormuz. This is the first time a civilian merchant vessel has been attacked by Iran since the outbreak of the U.S.-Iran war.

International crude prices rebounded on the report of a merchant ship being hit in the Strait of Hormuz. After plunging the previous day into the low $80s per barrel, the front-month West Texas Intermediate (WTI) futures contract jumped more than 4% on the day. The rally came despite the International Energy Agency (IEA) deciding to release strategic stocks totaling about 400 million barrels.

U.S. President Donald Trump again struck an optimistic tone, but markets did not take it seriously. Speaking to reporters at the White House, Trump urged that “oil companies should use the Strait of Hormuz,” adding, “You’re going to see great safety, and it will happen very, very quickly.”

Iran’s military remains on a fight-to-the-end footing, but Iranian President Masoud Pezeshkian laid out conditions for ending the war. He said, “The only way to end this war is to recognize Iran’s legitimate rights, pay compensation, and provide firm international guarantees against acts of aggression.”

The U.S. February consumer price index (CPI) matched market expectations.

By sector, consumer staples and real estate fell more than 1%, while energy surged 2.48%.

Oracle, which reported a surprise set of results after the prior session’s close, jumped about 9%.

Meanwhile, persistent revelations of troubled loans in private credit have delayed a recovery in risk sentiment. KKR fell 3.15% and Blackstone slid 2.46%.

According to the CME FedWatch tool, the federal funds futures market priced in a 63.8% probability that the policy rate will be held steady through June, up from 58.3% at the prior close.

The Cboe Volatility Index (VIX) fell 0.70 points (2.81%) from the previous session to 24.23.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com