So, remember all that worry about oil prices, supply chains, and geopolitical tension? Markets decided to take a massive sigh of relief on Friday. The catalyst? Iran announced it's fully reopening the Strait of Hormuz to commercial vessels. Just like that, a major choke point for global oil shipments is back in business, and Wall Street threw a party.

U.S. stocks surged to fresh all-time highs. Crude oil prices are crashing—we're talking double-digit percentage drops—which immediately eased those nagging fears of an energy-driven stagflation shock that had been hanging over markets for weeks. It's one of those days where a single headline reshuffles the entire deck.

Let's talk about the oil crash first, because that's the engine for everything else. West Texas Intermediate crude plunged 13% to $81.7 per barrel. Brent crude dropped 10.7% to $88.8. When oil falls that hard, that fast, it sends ripples—no, waves—through every corner of the market.

And the equity response was broad-based and enthusiastic. By midday Friday, the scoreboard looked like this:

• The S&P 500 advanced 99 points, or 1.4%, to 7,140. That's a fresh record, and it's eyeing its third straight session of gains. Here's a fun stat: since President Trump's ceasefire announcement (which apparently preceded this), the S&P 500 has rallied over 12%, claiming its best three-week rally since the COVID rebound in April 2020.
• The Nasdaq 100 gained 1.3% to 26,683, also hitting a fresh high. This extends its winning streak to 13 sessions—the longest since 2013 and only the fourth such run in the index's history. Tech can party too, even when the story is about oil.
• The Russell 2000, the small-cap index, actually outperformed, advancing 2.5% to 2,788. Small caps joined their larger-cap cousins at record highs. When small caps run like this, it often signals broad, risk-on sentiment.
• Oh, and 806 stocks in the Russell 1000 were trading higher. It was a good day to own stocks.

The bond market got the memo too. The yield on the U.S. 10-year Treasury note fell nearly 8 basis points to around 4.24%, approaching one-month lows. The 2-year yield dropped 9 basis points to 3.70%. Traders are clearly repricing the likelihood of potential interest rate cuts later this year. Lower oil prices mean less inflationary pressure, which gives the Fed more room to maneuver. Lower yields are rocket fuel for certain parts of the stock market, as we'll see.

Even the shiny stuff joined the fun. Gold climbed 1.8% to $4,873 per ounce, with the SPDR Gold Shares (GLD) tracking the advance, as Treasury yields and the dollar weakened. Silver did one better, soaring 5.2% to $82 per ounce.

And in the crypto corner, Bitcoin (BTC) rallied 4.5% to $78,000, heading for its highest close since early February 2026. For the week, the largest cryptocurrency is up over 10%—its best weekly surge since November 2024. When risk is on, Bitcoin often comes along for the ride.

Friday's Performance In Major US Indices

Updated by 12:15 PM ET

The ETF world mirrored the indices perfectly. The Vanguard S&P 500 ETF (VOO) gained 1.4%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) surged 2.1%. The Invesco QQQ Trust (QQQ) rose 1.3%. And the iShares Russell 2000 ETF (IWM) rallied 2.5%.

The Great Sector Rotation: Winners, Losers, and Jet Fuel

This is where the story gets really interesting. The reopening of Hormuz didn't just lift all boats. It created a dramatic sector rotation—a massive reshuffling of winners and losers based on who benefits from cheap oil and who gets hurt by it.

On the winning side, consumer discretionary stocks led the charge. The Consumer Discretionary Select Sector SPDR Fund (XLY) jumped 3.2%. Think about it: if consumers have more money because energy costs are falling, they might spend more on non-essentials. Industrials (XLI) were up 2.6%, and financials (XLF) rose 1.5%. Real estate (XLRE) advanced 1.6%, getting a nice boost from those falling Treasury yields (lower rates make real estate financing cheaper).

But the star of the show was anything related to travel. The U.S. Global Jets ETF (JETS) soared 6.8%, its best day in months. Why? Airlines live and die by jet fuel costs. A 13% crash in crude is like a massive, unexpected bonus hitting their bottom lines. Alaska Air Group Inc. (ALK) surged 13.6%, leading the Russell 1000. United Airlines Holdings Inc. (UAL) rallied 9.7%. Cruise lines joined the party: Royal Caribbean Cruises Ltd (RCL) jumped 10.4%, with peers Carnival Corp (CCL) and Norwegian Cruise Line Holdings Ltd (NCLH) also rallying sharply. Even Marriott International Inc. (MAR) and Booking Holdings Inc. (BKNG) gained as the travel trade caught fire.

Homebuilders loved the drop in rates too. The iShares U.S. Home Construction ETF (ITB) surged 5.6% on lower mortgage rates and reduced energy input costs for new homes. And gold miners followed the metal higher, with the VanEck Gold Miners ETF (GDX) gaining 4.4%.

Now, for the losers. This part is predictable but still brutal. The Energy Select Sector SPDR Fund (XLE) was the session's worst performer, tumbling 4.2% as the collapse in crude prices hammered oil producers and service companies. The pain was even more acute in specific energy ETFs: the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) cratered 6.5%. The VanEck Oil Services ETF (OIH) fell 2.1%. The Alerian MLP ETF (AMLP) dropped 1.7%.

Individual energy names got clobbered. Diamondback Energy Inc. (FANG) dropped 7.1%. APA Corp. (APA) sank 9.7%. Chord Energy Corp. (CHRD) fell 9.4%.

Here's a subtler loser: chemical producers. They sold off hard on the Hormuz reopening. Why? Their operations are often energy-intensive. Cheaper oil can actually hurt them by reducing the cost of their feedstock and potentially squeezing margins. LyondellBasell Industries N.V. (LYB) tumbled 12.1%. Dow Inc. (DOW) sank 11.8%. CF Industries Holdings Inc. (CF) fell 10.7%. The Utilities Select Sector SPDR Fund (XLU) also slipped 1.1%, perhaps losing some defensive appeal on such a strong risk-on day.

And in a reminder that company-specific news still matters, Netflix Inc. (NFLX) fell 9.1% after its second-quarter revenue guidance fell short of Wall Street expectations, even though its Q1 earnings per share of $1.23 beat estimates. Not even a market-wide party could save it from that disappointment.

The Leaderboards

To sum up the extreme moves, here are Friday's top gainers and losers in the Russell 1000:

Friday's Russell 1000 Top Gainers

Friday's Russell 1000 Top Losers

So there you have it. One geopolitical announcement, and the market calculus flips. Fears of inflation and constrained supply? Diminished. Hopes for consumer spending and lower interest rates? Amplified. It was a classic "risk-on" day fueled by a fundamental change in the oil market. The Strait of Hormuz is open, and, at least for today, Wall Street is wide open for business.