Stocks closed mostly higher on Thursday (markets were closed for Good Friday). And all of the major indexes closed higher for the week.

For the big three indexes (Dow, S&P 500 and Nasdaq), it was the first up week, after 5 down weeks in a row. For the small-cap Russell 2000 and mid-cap S&P 400, it marked the second up week in a row.

All of the indexes remain in pullback territory (down -5% to -9.99% from their high-close). But the small-caps and mid-caps are back in positive territory for the year, with YTD gains of 1.94% and 3.12% respectively. And the other indexes are not far behind with the Dow trailing by -3.24%, the S&P 500 down by -3.84%, and the Nasdaq down by -5.86% YTD.

Optimism for an end to hostilities in the Middle East have taken markets off their worst levels last week.

Last Wednesday evening, the President said the U.S. was "on track to complete all of America's military objectives shortly." And that "we are going to hit them extremely hard over the next 2-3 weeks." But he also said, "in the meantime, discussions are ongoing," while reiterating that if there's no deal (the deadline is Monday, 4/6, which is today), the military will target Iran's power plants.

The messaging struck two tones. Continued pressure on Iran, but hope that a deal can be reached to end the conflict sooner rather than later. So, whether it's thru a peace agreement, or a cessation of attacks after the U.S. meets all of its objectives, the conflict does appear to be closer to the end. And that was the lens investors viewed the market with last week.

But today is the deadline for an agreement, or at least reopening the Strait of Hormuz. On Sunday the President reiterated that, and said to reopen the Strait or "Tuesday will be power plant and bridge day."

In the meantime, the economy got some good news on Friday with the Employment Situation report.

The Bureau of Labor Statistics (BLS) showed nonfarm payrolls for March rose significantly more than expected with a headline print of 178,000 new jobs (186,000 in the private sector and -8,000 in the public sector), vs. the consensus for just 51,000 new jobs (56K in private and -5K public). The unemployment rate dipped to 4.3% vs. last month's 4.4% and views for the same. It should also be noted that average hourly wages moderated to 0.2% m/m vs. last month's 0.4% and estimates for 0.3%. On a y/y basis, it was up 3.5%, easing from last month's 3.8% pace.

Additionally, January was revised up by 34,000 jobs to 160,000 (from 126,000), while February was revised down by -41,000 jobs to -133,000 (from -92.000).

In March, the biggest job gains came from Health Care, which added 76,000 new jobs. (Over the prior 12 months, they've added on average of 29,000 new jobs per month.) Construction added 26,000 new jobs. Transportation and Warehousing gained 21,000 jobs. And employment in Social Assistance rose by 14,000.

The report also notes that federal government employment fell by another -18,000 in March. And since its peak in October 2024, federal government employment is down -355,000 or -11.8%.

It's a brand new week. But it should be a busy one.

Today will be the first day the market can react to last Friday's better-than-expected Employment report.

And the markets will be watching to see what develops with Iran given today's deadline.

See you tomorrow,