Summary4 min read

WSJ What’s News in Markets: Persian Gulf Oil Damage, Defense Stocks Under Fire, AI Revivals

Host: Imani Moise for The Wall Street Journal
Date: April 25, 2026

Episode Overview

This episode recaps the major market-moving news of the week, focusing on the impact of the war in the Middle East on oil supplies, unexpected pressure on defense stocks, and a revival for legacy tech brands riding the latest wave of AI enthusiasm. With the S&P 500 and NASDAQ setting new records, the episode explores which sectors surged, which stumbled, and the global currents behind dramatic price swings.

Key Discussion Points & Insights

1. Stock Market Recap

New Highs for S&P 500 and NASDAQ:
- Tech sector resilience overshadows concerns over Middle East conflict and oil price volatility.
- The NASDAQ climbed 1.5% propelled by AI-driven tech companies.
- The S&P 500 rose by about 0.5%, while the Dow Jones dipped slightly.
- (00:27–00:50)

2. Persian Gulf Conflict Shakes Oil Markets

Disruption of Oil Supply Routes:
- The US-Iran conflict has virtually halted Persian Gulf traffic, one of the world's most crucial oil corridors.
- Even rapid resolution may not undo the long-term supply chain damage; restarting production could be “slow and costly.”
- “Oil fields have been shut down, workers have fled the region, and restarting production is expected to be slow and costly.” – Imani Moise (01:12–01:29)
Impact on Prices and Energy Stocks:
- Brent crude surged nearly 17% this week, climbing to $105.33/barrel.
- S&P 500 energy stocks jumped ~3% as market bets on persistent supply constraints.
- “Energy stocks were one of the biggest winners… rising about 3% over the week as investors bet disruptions in the Middle East will keep oil prices elevated…” – Imani Moise (00:59–01:07)

3. Defense Stocks: Unexpected Underperformance

Slump Despite Increased Demand:
- Contrary to typical wartime rallies, top defense contractors Northrop Grumman and Lockheed Martin fell sharply—both down roughly 13% on the week.
- Lockheed Martin:
  - Missed Wall Street profit & sales estimates.
  - Unexpectedly high cash burn increases worries over margins and future returns.
  - “Lockheed Martin missed Wall street estimates for both sales and profit despite rising global demand for weapons and munitions…” – Imani Moise (01:42–01:53)
- Northrop Grumman:
  - Reported jumps in sales/profit but still price drop as market sees future headwinds or prior gains “already priced in.”
  - “Some of that growth may already be priced in after a strong run earlier this year.” – Imani Moise (02:12–02:16)

4. AI Revival Lifts Legacy Tech Companies

Intel Surges to 21st Century Record:
- Intel soared over 20% after reporting robust Q1 results, closing at $82.57—a record not seen since the dot-com era.
- “Intel shares surged more than 20%… its first record close since 2000.” – Imani Moise (02:26–02:36)
- Rising demand for CPUs—“the core engines of most computers”—is being fueled by the AI boom.
Nokia’s Comeback:
- Once famous for phones, Nokia saw a 3.5% stock rise, as its sales to AI and data center customers jumped 12%.
- “Nokia rose 3.5%… after the former phone maker reported a 12% increase in sales tied to demand from AI and data center customers.” – Imani Moise (02:51–02:57)

Notable Quotes & Moments

On Middle East conflict’s oil impact:
“The conflict between the US and Iran has effectively brought traffic in and out of the Persian Gulf close to a standstill, cutting off one of the world's most critical oil supply routes.” – Imani Moise (01:09–01:18)
Surprise in defense stocks:
“You’d think war would be good for defense stocks, but major contractors… were among the worst performers this week, even though both companies reported a surge in demand…” – Imani Moise (01:38–01:43)
AI as a New Lifeline for Old Tech: “The rise of AI agents is driving demand for CPUs, the core engines of most computers. An Intel specialty—another company that once looked at risk of falling behind is now finding new relevance in the AI era.” – Imani Moise (02:38–02:49)

Timestamps for Key Segments

00:09–00:50 — Market overview and performance summary.
00:51–01:29 — Middle East conflict and oil supply chain impact.
01:30–02:16 — Defense sector’s surprising losses.
02:17–02:57 — Tech sector rallies powered by the AI boom.

Closing Thoughts

This week’s episode underscores how quickly global conflict, supply shocks, and technological revolutions can shuffle market winners and losers. Despite deep macro fears, AI continues to offer old-tech stalwarts new growth, while even defense giants wobble under a microscope of costs and expectations. For more market moves and real-time coverage, listeners are directed to WSJ.com.

Loading summary

Transcript3 lines

[00:00]
A
AI is changing the world. We're securing it. Crowdstrike we stop breaches.
[00:09]
B
Hey, listeners, it's Saturday, April 25th. I'm Imani Moiz for the Wall Street Journal, and this is what's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's dive in. It was another week of records for markets The S&P 500 and NASDAQ hit new highs. Short, strong tech results overshadowed both ongoing anxiety over the war and surging oil prices. But the rally wasn't smooth. Stocks swung throughout the week as headlines about the conflict in the Middle east shifted and investors weighed a mixed batch of corporate earnings. Still, The Nasdaq rose 1.5% to a new record driven by tech companies cashing in on AI. The S&P 500 added about half a percent, and the Dow Jones industrial average slipped. Point. Energy stocks were one of the biggest winners in the S&P 500, rising about 3% over the week as investors bet disruptions in the Middle east will keep oil prices elevated for longer than expected. The conflict between the US And Iran has effectively brought traffic in and out of the Persian Gulf close to a standstill, cutting off one of the world's most critical oil supply routes. And even if the conflict were resolved quickly, analysts and oil industry executives say the damage to global energy infrastructure could take months or even years to fully unwind. Oil fields have been shut down, workers have fled the region, and restarting production is expected to be slow and costly. Brent crude, the international oil benchmark, surged nearly 17% this week to finish at $105.33 a barrel. You'd think war would be good for defense stocks, but major contractors like Northrop Grumman and Lockheed Martin were among the worst performers this week, even though both companies reported a surge in demand as they reported earnings. Investors aren't convinced that's translating into better returns. Lockheed Martin missed Wall street estimates for both sales and profit despite rising global demand for weapons and munitions. The company also burned through more cash than expected, raising concerns that higher costs and heavy investment could eat into returns. Shares in Lockheed Martin fell about 13% on the week, while Northrop Grumman also dropped roughly 13% despite reporting a jump in sales and profit. Some of that growth may already be priced in after a strong run earlier this year. Even with this week's pullback, both stocks are still up for the year, And tech stocks helped lift markets as the AI boom gave some legacy players a new lease on life. Intel shares surged more than 20% over the week after the Silicon Valley pioneer reported stronger than expected first quarter sales. That rally sent the company's shares to a record high of $82.57, its first record close since 2000. At the height of the dot com mania, the rise of AI agents is driving demand for CPUs, the core engines of most computers. And Intel Specialty, another company that once looked at risk of falling behind is now finding new relevance in the AI era. Nokia rose 3.5% this week after the former phone maker reported a 12% increase in sales tied to demand from AI and data center customers. And now you know what's news in markets this week you could read about more stocks that moved on the week's news in our live markets coverage on WSJ.com today's show was produced by Pierre Biennime with supervising producer Melanie Roy. I'm Imani Moise. Have a great weekend and see you next Saturday.
[03:59]
C
Some of the best lessons don't come from a classroom. They come from experience on the Power of Advice, a new podcast series from Capital Group. You'll hear from CEOs, investors and founders about how they built careers, took risks and reinvented themselves. If you're starting your own journey, this is the kind of advice you won't want to miss. Available wherever you get your podcasts published by Capital Client Group Inc.