US Stocks Recover and Close Higher
US stocks rebounded sharply on Monday (March 9th) and closed significantly higher, after markets assessed the potential for a quicker end to the conflict in the Middle East. This shift in sentiment eased concerns about stagflation that had weighed on major indexes earlier in the session.
The S&P 500 closed up 0.9%, the Dow Jones Industrial Average added 0.5%, and the Nasdaq jumped 1.3%. The gains came after President Donald Trump indicated the military campaign against Iran was nearing completion and the Strait of Hormuz began reopening to maritime traffic.
This shift in the geopolitical narrative led to a sharp decline in oil prices. WTI reportedly fell to around US$86 per barrel, reversing from an overnight peak of around US$119 per barrel that had previously sparked concerns about the stability of global energy supplies. The decline in oil helped to temper expectations of energy-based inflation that had previously overshadowed risk assets.
In the stock market, the semiconductor sector was a major supporter. Broadcom and AMD rallied more than 4.6%, boosting high-quality technology and growth stocks. Conversely, some financial stocks, such as Wells Fargo, remained weak.
Morgan Stanley believes the US market has the potential to emerge from a "rolling correction" phase, as earnings fundamentals remain solid. Market focus now shifts to confirmation of conflict developments and the normalization of energy flows through Hormuz, as well as their impact on oil prices and interest rate expectations.
Source: Newsmaker.id
