What’s News in Markets: The War Trade, Megadeals and a Sneaker Slowdown

Markets ended a short trading week higher amid mixed signals from the Iran conflict, with the Nasdaq up 4.4% on Thursday, the S&P 500 and Dow Jones Industrial Average each gaining about 3%. Brent crude surged nearly 8% to $109 a barrel as hopes for a quick resolution faded, though energy stocks in the S&P 500 fell more than 5% on concerns over long-term supply. Bond yields ticked up slightly after a strong jobs report, with the 10-year Treasury at 4.35%, and stock futures dipped modestly afterward.

Geopolitical Tensions Drive Oil but Hurt Energy Stocks

The week's market volatility stemmed partly from the Iran conflict, often called the "war trade." Investors rotated into commodities like oil as escalation risks grew, pushing Brent crude higher. However, this did not lift energy sector shares, which declined amid worries about sustained global supply. Turbulence from such events typically cools dealmaking, yet M&A activity defied the trend with a record-breaking start to the year.