Trump’s $1.5T Defense Budget Push, Iran Warning Send Stocks, Gold, and Bitcoin Lower
Oil Hits $111 a Barrel as Trump Speech Crushes April 1 De-escalation RallyBrent crude on Thursday via tradingview.com.Trump around 1 p.m. Eastern time on April 2, via Truth Social. Gold on Thursday via tradingview.com.
Bitcoin traded at approximately $67,024 at Wall Street’s close, down about 1.6% from April 1 levels. The coin touched a session low near $65,789. Ethereum fell 3% to 4%, hovering around $2,059. Total crypto market capitalization declined roughly 2% intraday to approximately $2.3 trillion. Bitcoin’s dominance held near 58%. Solana and XRP also moved lower.
The 10-year Treasury yield slipped below 4.31%. Safe-haven flows were mixed, with some demand for Treasuries offset by the dollar’s strength and oil-driven inflation concerns. Markets will be closed on Friday for Good Friday. Bond trading ended at 2 p.m. Eastern time. The next major catalyst is the March jobs report, scheduled for Friday release, which investors will review when trading resumes Monday.
April 1 had posted solid gains across all three major indices: the S&P 500 rose 0.7%, the Nasdaq added 1.2%, and the Dow gained 0.5%. Those moves reflected confidence that the Middle East conflict was near resolution. April 2 showed how quickly that confidence can break.
The dominant themes heading into next week are the Iran conflict, oil prices, the $1.5 trillion defense budget’s path through Congress, and any signals from the Federal Reserve on inflation expectations tied to energy costs.
FAQ 🔎
- What happened to U.S. stocks on April 2, 2026? The Dow, S&P 500, and Nasdaq all closed modestly lower after Trump’s speech escalating the Iran conflict sent oil prices sharply higher and reversed Wednesday’s gains.
- Why did oil prices spike on April 2? Trump’s national address vowing to strike Iran “extremely hard” revived fears of prolonged Middle East conflict and continued disruption to oil supply routes, including the Strait of Hormuz.
- How did Bitcoin perform on April 2, 2026? Bitcoin fell roughly 1.6% to close around $67,024, with Ethereum and most altcoins also declining as risk appetite dropped across global markets.
- What is Trump’s proposed 2027 defense budget? The administration proposed a $1.5 trillion defense budget for fiscal year 2027, which would be the largest annual U.S. military spending increase since World War II.
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Bitcoin traded at approximately $67,024 at Wall Street’s close, down about 1.6% from April 1 levels. The coin touched a session low near $65,789. Ethereum fell 3% to 4%, hovering around $2,059. Total crypto market capitalization declined roughly 2% intraday to approximately $2.3 trillion. Bitcoin’s dominance held near 58%. Solana and XRP also moved lower.
The 10-year Treasury yield slipped below 4.31%. Safe-haven flows were mixed, with some demand for Treasuries offset by the dollar’s strength and oil-driven inflation concerns. Markets will be closed on Friday for Good Friday. Bond trading ended at 2 p.m. Eastern time. The next major catalyst is the March jobs report, scheduled for Friday release, which investors will review when trading resumes Monday.
April 1 had posted solid gains across all three major indices: the S&P 500 rose 0.7%, the Nasdaq added 1.2%, and the Dow gained 0.5%. Those moves reflected confidence that the Middle East conflict was near resolution. April 2 showed how quickly that confidence can break.
The dominant themes heading into next week are the Iran conflict, oil prices, the $1.5 trillion defense budget’s path through Congress, and any signals from the Federal Reserve on inflation expectations tied to energy costs.
FAQ 🔎
- What happened to U.S. stocks on April 2, 2026? The Dow, S&P 500, and Nasdaq all closed modestly lower after Trump’s speech escalating the Iran conflict sent oil prices sharply higher and reversed Wednesday’s gains.
- Why did oil prices spike on April 2? Trump’s national address vowing to strike Iran “extremely hard” revived fears of prolonged Middle East conflict and continued disruption to oil supply routes, including the Strait of Hormuz.
- How did Bitcoin perform on April 2, 2026? Bitcoin fell roughly 1.6% to close around $67,024, with Ethereum and most altcoins also declining as risk appetite dropped across global markets.
- What is Trump’s proposed 2027 defense budget? The administration proposed a $1.5 trillion defense budget for fiscal year 2027, which would be the largest annual U.S. military spending increase since World War II.
About Author
