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

Episode Date: April 25, 2026

When will the oil shock fade? And why are defense companies losing ground despite booming demand? Plus, how AI is giving legacy tech a second act. Host Imani Moise discusses the biggest stock moves of the week and the news that drove them. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

What does leadership really look like? On The Power of Advice, a new podcast series from Capital Group, you'll hear from athletes, entrepreneurs, and executives who've led on the field in the boardroom and in their communities. It's not about titles. It's about impact. Discover what drives them and the advice they carry forward. Subscribe and start listening today.

Published by Capital Client Group, Inc. Hey listeners, it's Saturday, April 25th. I'm Eamani Moise 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.

Strong tech results overshadowed both ongoing anxiety over the war and surging oil prices. But the rally wasn't smooth. Stock swung throughout the week as headlines about the conflict. in the Middle East shifted and investors laid 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 0.4%. 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 U.S. 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. cents. Its first record closed 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 and this week. You could read about more stocks that moved on the week's news than our live markets coverage on WSJ.com. Today's show was produced by Pierre Bianameh with supervising producer Melanie Roy. I'm Imani-Mauiz. Have a great weekend and see you next Saturday. Find your perfect home on realtor.com. The perfect home in the perfect neighborhood, in the perfect school district perfectly close to work, but perfectly far enough away to escape to.

With over half a million new listings every month on realtor.com, you will be a perfect home. You won't miss out on your perfectly perfect home. Trust the number one site real estate professionals trust. Search now on realtor.com. Based on average new for sale and rental listings July 24 through June 2025. Number one trusted based on August 2025 proprietary survey among real estate professionals.