US stocks leap April 17,closing on a very healthy note to end the following week Iran he said Strait of Hormuz will remain operational during the Ceasefire between Israel and Lebanon.
That eased fears of a large oil supply shock. He Dow rose more than 900 points, the S&P 500 exceeded 7,100 for the first time, and the Nasdaq also reached a new intraday high. At the same time, oil prices are now in free fall. Brent Crude fell to around $88.90 a barrel and American crude oil fell to around $83.08.
Don’t confuse this with a simple relief demonstration.
Investors quickly began to exit oil reserves and in other areas that will benefit from the rebound. That’s the real story. Wall Street is now wondering whether the market’s next big winners will be airlines, cruise lines and consumer stocks. Energy stocks, on the other hand, are losing some of the advantage they had during the recent surge in oil prices.
If all the i’s are crossed, then oil stocks will emerge as the biggest losers as they are most closely tied to higher prices. crude oil prices.
Valero Energy (VLO) was down about 7.1% on the day. APA Corp. (apa) fell approximately 5.9%. Exxon Mobile (XOM) fell by approximately 3.7%, while Chevron (CLC) lost about 2.4%. That means investors hit companies that were hardest hit by oil prices the hardest, while the largest integrated oil companies fared a little better.
Related: Exxon Mobil Stock Just Got a Warning Wall Street Can’t Ignore
Why does that matter?
Because in the case of energy stocks, the story is simple and straightforward. If shipping via Hormuz remained under pressure, the price of oil would be rising and producers I would still win. Iran’s movement It did not eliminate all risks, but it did significantly weaken the thesis.
This does not mean that the history of oil However, it’s over. He US Energy Information Administration he said in his April outlook that Brent could remain very high this year, peaking around $115 in the second quarter and then falling to around $88 in the fourth quarter as supply slowly returns. Reuters also reported thatGoldman Sachs cut its oil forecast for the second quarter of 2026 to $90 per Brent and $87 for American crude oil.
That means Friday’s drop could be a rebootnot a collapse.
Yeah oil keeps falling, travel stocks They will end up becoming the biggest winners.
royal caribbean (RCL) rose approximately 7.9%, and united airlines (UAL) gained about 6.9% as markets focus on the downside fuel costs helping profits. This market movement is important for more than just oil. More economical energy can help lower inflationease the burden on consumersand do travel and other businesses that depend on fuel are more attractive.