Review & Preview: War Redux

Barron’s reports that a new flare-up in the Iran war rattled markets on May 4, knocking the Dow about 557 points (‑1.1%) and nudging the S&P 500 and Nasdaq lower, even as tech and AI-driven earnings momentum keeps markets resilient. Energy was the sole sector to gain (+0.9%) as higher oil and jet-fuel prices and Strait of Hormuz disruptions boost U.S. exports; the U.S. has shipped >250 million barrels since the war began (roughly +3 million bpd), helping fill up to 15% of the supply shortfall. Analysts note diplomatic resolution is still likely but warn of risks to global energy markets; strong corporate profits and upward earnings revisions (S&P forward EPS +11% YTD) are underpinning investor risk tolerance.