The more things change, the more they stay the same. For investors, that means that the direction of stocks on any given day has been inversely correlated to the price of oil. And heading into a long weekend, stocks were sinking as oil floated above $100 per barrel. This is a pattern that will be in place as long as the conflict in Iran threatens oil supply in the Strait of Hormuz.
Although the markets will be closed on Friday, April 3, the March jobs report will be released that day. That could set the tone for next week, when investors will get two important reads on inflation.
All of that happens before a new earnings season kicks off in mid-April. Earnings expectations are positive, which could give investors a reason to look past oil prices as we get deeper into the second quarter.
