The week that almost wasn’t. After peace talks between the U.S. and Iran collapsed over the weekend, sending oil prices back above $100 and crypto tumbling, markets looked ready for another brutal Monday. Instead, we got one of the strongest rally weeks of 2026.

The S&P 500 and Nasdaq hit fresh all-time highs Wednesday, with the broad market index rising 3% this week after falling more than 7% for the year at the Iran war lows . The recovery story played out across asset classes, from Bitcoin climbing back above $75,000 to oil plunging 16.4% in a single day to $94.41 per barrel .

What made this week special wasn’t just the numbers, but the psychology. Markets showed they’re still willing to bet on diplomatic solutions even when the headlines suggest otherwise. Stocks rode high on the possibility that a peace deal between the U.S. and Iran could materialize, with the S&P 500 fully recovering from its Iran war losses .

By the Numbers

AssetWeekly PerformanceCurrent Level
S&P 500+3.0%
7,022.95
Nasdaq+3.5%
24,016.02
Dow Jones+1.8%
48,463.72
Bitcoin+4.7%
~$75,400
Ethereum+6.9%
~$2,350
10-Year Treasuryn/a
4.28%
Oil (WTI)-15.2%
~$91/barrel
Goldn/an/a
DXYn/an/a

What Moved Markets

Iran Ceasefire Drama Dominates

The week’s script was written in the Middle East. President Trump on Sunday morning said the U.S. will impose a naval blockade on Iran and the Strait of Hormuz, several hours after peace talks in Pakistan ended in failure. Iran has effectively held the strait hostage, imposing a toll and limiting oil exports .

But markets got their relief rally when Iranian Foreign Minister Seyed Abbas Araghchi declared the Strait of Hormuz “completely open” for commercial traffic, with President Trump appearing to confirm the reopening . The whipsaw moves showed just how sensitive traders remain to Middle East developments.

Record-Setting Market Recovery

Both the Nasdaq and S&P 500 closed at records, with the tech-heavy index posting an 11th day win streak and the broad market benchmark notching its 10th positive session out of 11 . The breadth was impressive too - eight stocks in the S&P 500 traded at new all-time highs on Wednesday alone.

This wasn’t just a relief bounce. The first quarter earnings season for the S&P 500 is off to a strong start relative to expectations, with both the percentage of companies reporting positive earnings surprises and the magnitude of those surprises above recent averages .

Energy Volatility Extreme

Oil provided the week’s most dramatic moves. Global benchmark Brent crude was up by over $7 per barrel to $102.29 Sunday evening, while WTI rose roughly $8 to $104.56, remaining around these prices overnight and into Monday .

Then came the reversal. Apart from COVID, it was the biggest one-day free fall in oil prices since the 1991 Gulf War, with global benchmark Brent crude futures falling about 13% to about $95 a barrel .

Crypto Corner

Bitcoin and Ethereum both had strong weeks, with crypto benefiting from the same risk-on sentiment that lifted stocks. Ether gained 4% over the past seven days to trade near $2,325, outpacing bitcoin’s 3.9% move over the same period .

The week highlighted crypto’s evolving role as a geopolitical hedge. While escalating tensions with Iran pushed bitcoin and ethereum prices lower incrementally, the two cryptocurrencies are up 12.3% and 20.2% since the war began. Their status as apolitical assets potentially gives them a demand edge over other risk assets in times of global crisis .

Institutional flows remained supportive. After a 5-day outflow streak totaling $1.72B, IBIT recorded a 5-week high inflow of $269.3M. Total US spot BTC ETF net inflows reached $358.1M in the recovery session .

The Week Ahead

  • Tuesday (4/21): Federal Reserve chair nominee Kevin Warsh’s initial confirmation hearing before the Senate Banking Committee is the most-anticipated event of the week

  • Various: Retail sales data and consumer sentiment updates

  • Ongoing: Iran ceasefire negotiations and Strait of Hormuz shipping developments

  • Earnings: Continued Q1 reporting season with 93 S&P 500 companies scheduled to report results

DCA Check-in

This week perfectly illustrates why dollar-cost averaging works. While traders scrambled to react to hourly oil price moves and ceasefire headlines, DCA investors just kept buying. The weekly volatility that dominated headlines becomes noise over longer time horizons. Your systematic approach stays steady regardless of whether markets are panicking about blockades or celebrating diplomatic breakthroughs.

This article is for educational purposes only. It is not financial advice. See our full disclaimer.