US Stock Indices Rise on Improved Investor Sentiment

All three major United States stock indices rose on April 8, 2026, following the announcement of a ceasefire between the United States and Iran. The Dow Jones Industrial Average recorded its strongest single-day performance in one year as a result of the truce brokered by Donald Trump.

The rally coincided with a sharp decline in oil prices, which plummeted following the news of the ceasefire. The market response indicates a shift in investor sentiment as geopolitical tensions between the two nations eased.

Investor Sentiment Trends

Data from the American Association of Individual Investors (AAII) Sentiment Survey indicates a growing trend of optimism among individual investors. For the week of April 2, 2026, bullish sentiment—the expectation that stock prices will rise over the next six months—stood at 33.57%.

This figure represents an increase from 32.10% during the week of March 26, 2026. The survey also noted a decrease in pessimism regarding the short-term outlook for stocks, while neutral sentiment and optimism both increased.

Historical data shows that bullish sentiment had declined throughout the first quarter of 2026. The sentiment reached 49.50% on January 15, 2026, before dropping to a period low of 30.40% on March 19, 2026. The current level of 33.57% remains below the long-term average of 37.62%.

Market Momentum Indicators

The CNN Fear & Greed Index uses seven different market indicators to determine the prevailing emotion driving the market. One primary metric is market momentum, which is measured by comparing the S&P 500 to its 125-day moving average.

According to the index methodology, the market shows positive momentum when the S&P 500 remains above this rolling average, which is viewed as a signal for greed. Conversely, when the index falls below the 125-day average, It’s interpreted as a sign that investors are becoming skittish, signaling fear.

International Market Impact

The positive movement in the United States was mirrored in other global markets. On April 6, 2026, the Nikkei Average in Tokyo posted a Monday rise for the first time in approximately two months.

Specific gains in the Tokyo market included Sakura Net and Pan Pacific HD, the operator of Don Quijote stores, the latter of which saw increased favor due to an industry acquisition.

This broader recovery follows a 2025 period in which U.S. Stocks rose, although foreign stocks outperformed U.S. Equities during that year.