The Dow Jones Industrial Average slipped Thursday in volatile trading as oil prices surged following President Donald Trump's remarks that the Iran war would continue for weeks.
The blue-chip Dow declined 61.07 pointsor 0.13%closing at 46,504.67. The S&P 500 advanced 0.11% to end at 6,582.69and the Nasdaq Composite gained 0.18% to settle at 21,879.18.
The three major indexes ripped higher from their steep losses earlier in the day to briefly turn positive after Iranian state media said that the Middle Eastern country is working with Oman on a protocol to "monitor" ships passing through the Strait of Hormuz. At their lowsthe Dow was down more than 600 pointsor 1.4%while the S&P 500 and Nasdaq were down 1.5% and 2.2%respectively.
"It's pivotal for the United States that the Strait is reopenednot so much because of oil but because of helium," said Todd Schoenbergerchief investment officer at CrossCheck Managementnoting that helium is "more valuable than foreign oil" given its usage in semiconductor processing and that "there is no substitute for it."
"Expect more volatility going into the long weekend," he added.
The indexes oscillated between gains and losses throughout the session following the developments. The CBOE Volatility Indexotherwise known as Wall Street's fear gaugetouched a session high of more than 27.
"I think investors are having knee-jerk reactions — they want the news to be goodbut then think about it a little longer and decide perhaps the uncertainty is still too highhence the high intraday volatility," Melissa Brownmanaging director of investment decision research at SimCorpsaid to CNBC.
Trump delivered an address Wednesday nightproviding updates on the Middle East conflict. Though he said that the U.S. is "getting very close" to ending the Iran warTrump added that the nation would "hit" Tehran "extremely hard."
"Over the next two to three weekswe're going to bring them back to the stone ages where they belong," the president said.
His comments led to a surge in oil prices. West Texas Intermediate crude futures settled up 11.41% at $111.54 per barrel — the highest level since June 282022. Brent crude futures settled 7.78% higher at $109.03 per barrel.
Oil prices will likely "stay higher for longer," Brown believes. But even if they do eventually come downshe said that gas prices would still take longer to do someaning there's going to be a "continued inflationary impact on the economy."
Even with the week's volatile tradingthe major averages posted gains over the period. The S&P 500 advanced 3.4% week to datewhile the Dow rose nearly 3%. The Nasdaq outperformed and climbed 4.4%.
Thursday marks the last trading day of the shortened weekas markets are closed for Good Friday. March's jobs report is set for release on Friday morninghowever.
— CNBC's Spencer Kimball contributed reporting.
