It took a holiday-shortened week and a dose of unexpected diplomatic drama, but Wall Street finally managed to stop the bleeding.

The S&P 500 – as tracked by the SPDR S&P 500 ETF Trust (SPY) – logged its strongest weekly rally since late November. That snapped a five-week slide, which had been the worst losing streak since 2022. The market was closed for Good Friday, so the week wrapped up on Thursday. The relief was palpable, if a bit fragile.

From Ceasefire Hopes To 'Stone Age' Threats: Trump's Message Whipsaws Markets

So, what changed? The catalyst arrived on Tuesday, March 31, when President Donald Trump declared that U.S. and Iranian negotiators had shared "good and productive conversations," adding that a ceasefire agreement could come "very soon."

Markets, which had been pricing in a prolonged Middle East conflict that had shut down the Strait of Hormuz, loved it. The S&P 500 surged 3%—its best single-day jump in nearly a year. Oil prices, a key barometer of Middle East tension, fell toward $85 a barrel. For one glorious day, traders bet on a world where shipping lanes reopen and supply chains breathe a sigh of relief.

The euphoria, as it often does on Wall Street, didn't last. In a televised address Wednesday night, Trump shifted gears. He said Iran must formally accept U.S. terms before any agreement would be recognized, reaffirming an April 6 deadline. Then came the punchline: he warned that Iranian infrastructure would be hit "extremely hard" over the next two to three weeks, threatening to push Tehran back to the "Stone Ages."

The optimism that had briefly brought crude below $100 quickly reversed. U.S. stocks cooled from their Tuesday highs but, notably, didn't collapse. It was a classic case of geopolitical whiplash, served directly to the trading floor.

Oil Closes The Week At June 2022 Levels As Supply Shock Fears Intensify

By the end of the rollercoaster week, the oil market told the real story. West Texas Intermediate crude – as tracked by the United States Oil Fund (USO) – closed above $110 a barrel. That was its highest closing price since June 2022.

But the price level wasn't the only weird thing. More striking was a structural shift in the global oil market: for the first time since 2009, WTI is trading at a premium of more than $3 over Brent crude. That inverts a relationship that had held for over a decade, where Brent (the international benchmark) typically traded at a premium to WTI (the U.S. benchmark).

Why the flip? Analysts point to U.S. refiners. They're ramping up demand at the start of the spring driving season, drawing heavily on domestic crude stocks. Meanwhile, international buyers can't easily access that U.S. oil while the Strait of Hormuz remains closed, tightening supplies elsewhere and changing the usual pricing dynamics. It's a tangible sign of how a regional conflict can warp global commodity flows.

Amid all this, gold caught a bid. The precious metal, which had collapsed 11.5% in March for its worst monthly performance since October 2008, rebounded 3.7% this week. The catalyst wasn't just geopolitical fear. It was a shift in what the market expects from the Federal Reserve.

Speaking at Harvard University on Tuesday, Fed Chair Jerome Powell said monetary policy is in "a good place for us to wait and see how that turns out." Traders read that as a clear signal: the Fed intends to look through the current oil price shock rather than immediately hike interest rates to combat the inflationary pressure it creates. For gold, which hates higher rates, that was a green light.

Nike Sinks To 2014 Lows As War Shock Hits Consumer Outlook

The costs and uncertainties of the conflict are starting to show up in corporate earnings, moving beyond the abstract world of commodity prices. Take Nike Inc. (NKE).

The athleticwear giant beat earnings estimates on Tuesday. But it buried some alarming guidance inside the report. The company expects sales in China to fall 20% year-over-year. Management explicitly cited "unplanned volatility due to disruption in the Middle East and rising oil prices" as a key reason.

That's a direct line from geopolitical disruption in the Persian Gulf to consumer demand in Shanghai. The stock didn't take it well, falling 15% on Wednesday. It closed Thursday at its lowest share price since October 2014.

For other consumer-facing giants, particularly in Michigan, the week offered little comfort. Ford Motor Co. (F) and General Motors Co. (GM) are both down 12.6% for the year, hovering near their 2026 lows. High oil prices and economic uncertainty are a tough environment for selling cars.

So, the losing streak is over. The S&P 500 rallied. But the week's events painted a clear picture: the market's relief is tightly tethered to headlines from the White House, the price of a barrel of oil, and warnings from corporate America about the real-world economic fallout. It was a break, but not exactly a vacation.