NEW YORK, April 20, 2026, 13:01 EDT
Stocks in the U.S. edged lower Monday, pulling back after last week’s record-setting rally, with oil prices surging and renewed skepticism around a U.S.-Iran ceasefire dampening sentiment. As of 11:41 a.m. ET, the Dow Jones Industrial Average slipped 0.12%, the S&P 500 dropped 0.33%, and the Nasdaq Composite fell 0.55%.
This pullback hits as Wall Street tries to gauge if the rally has legs. Since March 30, the S&P 500 has jumped 12%. On Friday, both the S&P 500 and Nasdaq notched a third consecutive record close. The Nasdaq’s run now stands at 13 sessions—the longest streak since 1992.
Earnings are doing the heavy lifting for this rally. So far, with roughly 10% of S&P 500 names out, close to 90% have topped forecasts. First-quarter profit growth is coming in between 13% and 14%. “The earnings recovery remains intact,” Morgan Stanley’s Michael Wilson and his team said. AP News
Chase Investment Counsel president Peter Tuz pointed to “headlines of the day” out of Iran as the main force behind Monday’s session, though upbeat corporate results curbed losses. “Investors are still looking through the day-to-day moves in the Middle East and turning their focus back to earnings,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments. Reuters
Brent crude surged $4.61, or 5.1%, to hit $94.99 a barrel by 11:26 a.m. ET, while U.S. crude added 5.16%, climbing to $88.18. The jump followed the U.S. seizure of an Iranian cargo ship, with flows through the Strait of Hormuz—once responsible for roughly a fifth of global oil—still crawling.
Tech names were under pressure on the tape. Amazon dropped roughly 1.6%, Meta slipped 2%, weighing on consumer and communications stocks. A bright spot: Marvell tacked on 4% after a report pointed to Google discussing fresh AI chip development with the company.
This week, the focus shifts to whether bottom lines can outpace global turmoil. UnitedHealth is up on Tuesday, Tesla follows Wednesday, then Boeing and Procter & Gamble land later, as investors scour results for any sign that pricier energy and conflict haven’t derailed momentum.
It’s a simple threat—crude prices hold up, and inflation could be next. Michael Mullaney at Boston Partners flagged that the market acted like it had “woken up from a bad dream,” while oil’s rally still threatens to drive Treasury yields up. On Monday, the U.S. 10-year sat at 4.266%. Reuters
One more deadline is on deck: the ceasefire runs out at 8 p.m. Eastern this Tuesday, April 21. Nikos Tzabouras at Tradu flagged the moment, warning that stalled negotiations plus thin ship movement through Hormuz might “push crude even higher” if things fall apart. AP News
At this point, the pullback resembled a breather rather than anything decisive. Updated Bloomberg market data showed both the S&P 500 and Nasdaq holding losses, with the CBOE Volatility Index climbing to 19.42—its highest in a week. Friday’s rally had closed the S&P 500 at a record 7,126.06.
