Oil rally highlights energy sector while broader markets remain under pressure.
U.S. stocks fell Thursday as surging oil prices intensified concerns about the economic impact of the ongoing conflict involving Iran. Major indexes closed at their lowest levels of 2026, with the Dow finishing below the 47,000 level for the first time this year.
Oil prices continued climbing after Iran’s newly appointed supreme leader said the Strait of Hormuz should remain closed as a strategic tool against its opponents. West Texas Intermediate (WTI) crude surged nearly 10% to $95.73 per barrel, while Brent crude settled above $100, marking its first close above that level since August 2022.
The rally in oil helped push energy stocks higher, with Chevron (CVX) and Exxon Mobil (XOM) among the few gainers in the S&P 500 while most sectors declined. Banks and technology stocks led the broader sell-off as investors worried that higher energy costs could weigh on economic growth and consumer spending.
Geopolitical risks continued to dominate headlines as tanker traffic through the Strait of Hormuz slowed sharply amid attacks on vessels in the Persian Gulf. U.S. officials said the Navy may eventually escort oil tankers through the region, while the government also plans to release 172 million barrels from the Strategic Petroleum Reserve to help stabilize energy markets.
The International Energy Agency has also agreed to release 400 million barrels of oil globally in an attempt to offset supply disruptions caused by the conflict. Despite these efforts, oil prices remained elevated as investors weighed the risk that the conflict could persist.
Even with the recent volatility, the broader market pullback remains relatively contained. The S&P 500 is still only about 4% below its record high reached in January, suggesting investors are still assessing whether higher energy prices will have a lasting economic impact.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
CF Industries Hits Record High on Fertilizer Supply Concerns
Shares of CF Industries (CF) surged about 13% to a record high and topped the S&P 500 for a second straight day as concerns grew that the Iran conflict could disrupt global supplies of nitrogen-based fertilizers. The company, which controls nearly 40% of the North American nitrogen fertilizer market, could benefit if exports of urea and ammonia from the Middle East are disrupted, as the region accounts for a significant share of global supply. Rising natural gas prices in Europe have also widened the cost advantage for U.S. producers like CF compared to international competitors, leading analysts to view the company as one of the most attractive near-term opportunities in the fertilizer sector.
Adobe Targets 10.2% ARR Growth in 2026 While Advancing AI Strategy
Adobe (ADBE) reported fiscal Q1 2026 revenue of $6.4B, up about 12% year over year, driven by strong growth in subscription services and increasing adoption of AI-powered products such as Firefly and Express. The company recorded total annual recurring revenue (ARR) of $26.06B, up roughly 10.9% year over year, and expects ARR to grow around 10.2% in fiscal 2026. CEO Shantanu Narayen also announced plans to transition from the CEO role after more than 18 years while remaining as Chairman to ensure leadership continuity. Adobe emphasized that its AI-first strategy remains central to long-term monetization through expanding user engagement and integrating generative AI capabilities across its product ecosystem.
Funko Targets $70M–$80M Adjusted EBITDA for 2026
Funko (FNKO) is targeting adjusted EBITDA of $70M to $80M in 2026 as the company focuses on expanding international growth and renewing major entertainment licensing agreements. The company reported fourth-quarter net sales of $273M with a gross margin of about 41%, while management expects 2026 net sales to be flat to up about 3% compared with the prior year. Growth is expected to be driven by the core Funko product lines and expansion in international markets such as Europe, Asia, and Latin America, although the Loungefly segment is projected to decline due to SKU reductions implemented last year.
📅 Earnings Watch
With oil prices approaching the $100 level and geopolitical tensions continuing to evolve, investors are likely to keep a close watch on energy markets and their potential impact on inflation and global economic growth in the coming weeks.
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