US Stock Market: What happened on the night of April 23rd that changed the mood of US stocks in the last 30 minutes, and where did the crude and peace talks end.

News Topical, Digital Desk : On the night of April 23rd, US stock markets initially saw a sharp decline, but a spectacular recovery in the final 30 minutes changed the mood. The Dow Jones Industrial Average (DJIA) closed significantly lower after losing 630 points during the day. The S&P 500 slipped from record highs but recovered from lower levels. Crude oil prices, Iran tensions, Trump's statements, and expectations regarding peace talks played a key role in this. The market experienced both fear and relief overnight.

But within hours, the picture changed. Geopolitical tensions and a surge in oil prices spooked investors. Selling intensified, and the market began to slide. The Dow Jones Industrial Average fell by nearly 630 points during the day, suggesting a weak closing. The Nasdaq Composite also came under pressure, and tech stocks saw selling. 

However, the market sentiment changed in the final 30 minutes . Investors began buying at lower levels. Short-covering was also observed. As a result, the Dow Jones recovered from the day's heavy losses to close down just 179 points. The Nasdaq fell 219 points, while the S&P 500 closed down only 29 points. 

What changed in the final 30 minutes? There were several reasons behind the market's recovery. The first reason was that investors felt the day's decline was excessive. Many strong stocks began to look attractive at lower levels. The second reason was that the prospect of a major military confrontation over the Iran tensions appeared low. Strong statements continued throughout the day, but there was no immediate major attack or new military action. This provided some relief to the market. The third reason was the hope for peace talks. Donald Trump talked about extending the ceasefire between Israel and Lebanon by three weeks. He also said that the US would help Lebanon's security. This gave investors the impression that negotiations were ongoing on at least some fronts in the region. 

Why did crude oil scare? The biggest pressure during the market weakness came from the rise in oil prices. Brent crude closed above $106 per barrel. WTI crude reached close to $97. Rising oil prices mean the risk of inflation, rising corporate costs, and reduced expectations of interest rate relief. This is why the market remained under pressure throughout the day. However, in the final round, some investors bet that the rise in oil prices could be limited and that fears were exaggerated. This led to a return of buying. 

Impact of Trump's Statements Donald Trump stated that if a deal isn't reached, the remaining 25% of targets will be eliminated militarily. He also took a tough stance on the Strait of Hormuz and instructed the US Navy to remain vigilant. These statements kept the market nervous throughout the day. However, when no immediate new crisis emerged, the anxiety subsided before the closing. 

Relief from corporate earnings: Good results from some companies also helped the market recover. Intel jumped 20% in the after-market after posting strong guidance. AMD also rose 8%. Texas Instruments also provided strong signals. However, stocks like IBM and ServiceNow remained under pressure. 

What are the signs for India? The recovery in the last hour of the US market could be a sign of relief for the Indian market. If the US had closed with a sharp decline, it could have created more pressure in Asia. However, the rise in oil prices remains a concern. For importing countries like India, expensive crude remains a risk.

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