US equities surged on Friday, with the Dow up 2.3% to 49,694.82, S&P 500 up 1.5% to 7,143.69, and Nasdaq up 1.7% to 24,505.28 after Iran reopened the Strait of Hormuz.
Oil prices tumbled, Brent falling 10.4% to $89.02 per barrel and WTI dropping 12.1% to $83.19, easing inflation concerns.
Netflix fell 9.6% on weak guidance and chair’s exit, while Alcoa slipped 7.2%; Autoliv rose 9.6% and travel stocks UAL, NCLH, RCL, CCL surged.
Traders now price a roughly 60% chance of a Federal Reserve rate cut by December, reflecting lower inflation expectations after the oil price collapse.