Wall Street opened the week with a shrug. The Dow Jones Industrial Average closed 200 points higher, the only major index to post a clear gain, while the S&P 500 hovered just below the flat line and the Nasdaq slipped 0.4%. It was a quiet session. Volumes were the lowest recorded in 2026 so far, a telltale sign that traders are sitting on their hands before a heavy slate of banking results and crucial inflation readings later this week.
The bond market was entirely closed for a holiday, removing a key liquidity driver and further dampening price discovery. Without the fixed-income crowd in the mix, equity action felt thinner, more reactive. The Dow’s outperformance suggests a rotation back into value and industrial heavyweights, a classic defense when uncertainty looms.
But the mood was sour at the top end. Brent crude spiked above $107 a barrel before settling at $106.65. The jump came after Ukraine accused Russia of violating the ceasefire announced by US President Donald Trump, while Houthi attacks persisted in Saudi Arabia. Higher oil prices squeeze margins for airlines, shipping, and consumer discretionary—sectors that typically drag down the Nasdaq’s tech-heavy peers.
Investors are now pivoting toward earnings. Big banks report this week, and the market is pricing in how their loan books and net interest margins will hold up against this volatile macro backdrop. Expect volatility to return once the CME FedWatch tool updates its probability estimates for rate cuts. Until then, the tape remains light.