Wall Street Before Good Friday: Three Remaining Concerns Behind the Rebound

Today (U.S. time April 3), New York markets were closed for Good Friday. On the prior trading day, April 2, the S&P 500 rose 0.1% to 6,582.69, and the Nasdaq gained 0.2%, delivering weekly rebounds of 3.4% and 4.4%, respectively. The Dow slipped 0.1% on the day but climbed 3.0% over the week, marking its first positive weekly performance since the Iran conflict began.

The biggest market drivers remain the conflict with Iran and the resulting spike in oil prices. U.S. crude topped $110 per barrel, stoking concerns about both inflation and an economic slowdown. Investors have shifted from growth stocks into defensive sectors such as energy and utilities. With OPEC+ set to meet on April 5 to discuss emergency production increases, oil-price volatility is likely to persist through the weekend.

March’s employment report, released today, surprised to the upside and pushed U.S. Treasury yields higher. Bond markets are increasingly betting that the Federal Reserve will keep its policy rate unchanged for the rest of the year. While strong job growth eases fears of a hard landing in the U.S. economy, high oil prices raise stagflation risks and continue to weigh on growth-stock valuations.

On the corporate front, Acuity Brands beat earnings expectations but saw its shares fall nearly 6% as revenue and forward guidance disappointed—highlighting margin pressures and softening demand. With markets closed, investors must now track the conflict’s trajectory, the upcoming OPEC meeting, and the start of the first-quarter earnings season next week.