Market Summary: What happened yesterday and what awaits us today, April 20:

U.S. equities wrapped up a strong week on a high note, with all three major indices posting solid gains and extending a three-week winning streak. Improving sentiment, driven by easing geopolitical concerns and a sharp drop in oil prices, helped fuel a renewed wave of risk appetite across markets.

The Dow Jones Industrial Average led the charge, rising 1.8% and adding nearly 850 points, while the Nasdaq Composite gained 1.5% and the S&P 500 advanced 1.2%. Both the Nasdaq and S&P 500 notched fresh record highs for a third consecutive session, underscoring the strength of momentum, particularly within the technology sector.

On a weekly basis, the rally was even more pronounced. The Nasdaq surged 6.8%, marking its strongest performance in months, while the S&P 500 climbed 4.5% and the Dow added 3.2%. The gains signal a decisive return of bullish sentiment following recent bouts of volatility.

A key driver of the move was a sharp decline in oil prices, triggered by developments around the Strait of Hormuz. Iranian Foreign Minister Seyyed Abbas Araqchi confirmed that the vital shipping route had been reopened during a ceasefire period, easing fears over global energy supply disruptions. Additional reassurance came from Donald Trump, who suggested Iran would not use the strait as leverage in ongoing negotiations.

However, the situation remains fluid. Over the weekend, Iran announced a renewed closure of the strait following U.S. actions, injecting fresh uncertainty into markets ahead of the new trading week.

Energy markets reacted sharply to the earlier developments. West Texas Intermediate crude fell around 10% to close near $84.85 per barrel, while Brent crude dropped roughly 9% to around $90, as expectations of stabilizing supply weighed on prices.

In macro markets, the U.S. dollar index edged lower, while yields on 10-year Treasuries slipped below 4.25%, pointing to easing inflation pressures and a potentially softer monetary policy outlook. Gold gained 1.4% to approach $4,875 per ounce, reflecting a balance between improving sentiment and lingering demand for safety, while cryptocurrencies traded unevenly amid shifting liquidity flows.

At the stock level, performance was mixed. Netflix declined sharply after issuing weaker-than-expected revenue guidance, while Tesla and other major tech names continued to power higher. Meanwhile, travel-related stocks such as United Airlines, Delta Air Lines, and Royal Caribbean rallied on the back of falling fuel costs and improving demand outlooks.

Market Outlook

Markets are entering the new week with a mix of optimism and caution. While the recent rally has been supported by falling oil prices and improving sentiment, the re-escalation of tensions around the Strait of Hormuz could quickly reintroduce volatility.

Oil will remain a key barometer, with prices likely to react sharply to any geopolitical updates. At the same time, equities may face short-term profit-taking after their strong run, particularly if bond yields stabilize or move higher.

Investors will also be closely watching signals from the Federal Reserve for clues on the interest rate path. In the near term, expect choppy trading conditions, with geopolitical developments continuing to act as the dominant market driver.