Global financial markets moved higher as investors reacted to signs of easing geopolitical tensions, particularly surrounding developments in Iran, while elevated oil prices and macroeconomic uncertainty continue to shape sentiment.
Market Overview
Markets rebounded strongly, supported by optimism around geopolitical developments, though underlying risks remain.
US Markets Lead Gains
US equity markets closed notably higher on Tuesday, driven by optimism around a potential easing of tensions in the Middle East. President Trump stated that US forces will leave Iran within two to three weeks and that the country’s nuclear threat has been neutralised. This helped lift investor sentiment despite ongoing uncertainty surrounding the closure of the Strait of Hormuz.
Technology and communication services led the rally, each rising more than 4 percent. The Nasdaq gained approximately 3.8 percent, while the S&P 500 and Dow Jones rose around 2.9 percent and 2.5 percent respectively. Bond yields edged slightly lower.
Elsewhere during the session, oil prices remained elevated above 100 dollars per barrel amid continued concerns about supply disruptions and uncertainty over the reopening of key shipping routes. In fixed income markets, US Treasury yields moved modestly lower, while broader sentiment was supported by expectations of a potential de-escalation in the conflict, even as risks tied to developments in the region persist.
Overall, while the rebound offers some encouragement after recent weakness, underlying risks linked to the conflict and global growth outlook have not fully subsided.
Global Market Performance
Asian Markets Surge
Asian equities rallied on Wednesday, led by South Korea’s KOSPI, which surged over 6 percent, supported by dip buying and strong export data.
Japan’s Nikkei and TOPIX also posted solid gains, while broader regional markets advanced on optimism that the Iran conflict may ease, although elevated oil prices continued to reflect ongoing supply concerns.
US Futures and Corporate Moves
US equity index futures rose overnight following Wall Street’s strong month-end rally after President Trump signalled an end to the Iran war.
- S&P 500 Futures rose 0.3% to 6,591.75
- Nasdaq 100 Futures gained 0.5% to 24,035
- Dow Jones Futures added 0.2% to 46,653
Nike shares slipped 2.6% after hours following its quarterly results.
European Equities Edge Higher
European equities edged higher for a second consecutive session as investors assessed corporate prospects amid macroeconomic uncertainty.
- STOXX 50 rose 0.3% to 5,560
- STOXX 600 gained 0.4% to 583
Banks including UniCredit, Deutsche Bank, and BBVA advanced up to 2 percent, supported by falling bonds, while AI-exposed shares such as Infineon also gained around 2 percent.
Currency and Commodities Update
The US dollar fell 0.59 percent to 99.96, amid hopes the US-Israel war with Iran may be shorter than feared, though it remains on track for its strongest quarter since Q4 2024.
The euro rose 0.68 percent to 1.1543, despite a 2.25 percent monthly decline, reflecting lingering conflict uncertainty and safe-haven support for the dollar.
Oil prices held near multi-year highs, with Brent above 104 dollars and WTI over 102 dollars per barrel. Prices remained supported by disruption fears as the Strait of Hormuz stayed largely closed, despite signals of a possible ceasefire, leaving markets cautious amid ongoing uncertainty over global supply conditions and demand outlook.
Equities on the Move
Key Corporate Highlights
Nike beat earnings and revenue expectations, but shares fell after hours due to continued weakness in China and lower margins from tariffs. North America showed modest growth, and CEO Elliott Hill’s turnaround plan is gradually taking effect. Analysts highlighted improving inventories and wholesale momentum, though competition from Anta and Li Ning remains challenging.
Marvell Technology partnered with Nvidia, which is investing 2 billion dollars as part of a strategic AI infrastructure deal. Marvell will supply custom XPUs and NVLink-compatible networking, while Nvidia provides GPUs, DPUs, NICs, and AI-RAN technology. The collaboration also explores silicon photonics, aiming to transform telecom networks for 5G and 6G AI applications.
Meta Platforms launched two new Ray-Ban prescription smart glasses — Blayzer Optics and Scriber Optics — available for pre-order in the US from 499 dollars and arriving in stores on April 14. The products offer adjustable fittings. Meta leads the global smart glasses market and continues investing heavily in AI-powered personal devices in partnership with EssilorLuxottica.
Apple is testing a Siri update allowing multiple requests in a single query across iOS 27, iPadOS 27, and macOS 27. Using technology from Alphabet’s Gemini AI, the revamped assistant (code-named “Campos”) will serve as Apple’s first AI chatbot, launching at WWDC on June 8, aiming to align Siri with newer AI assistants and expand compatibility with rival AI services.
Unilever will merge its food business with McCormick in a 65 billion dollar reverse Morris Trust deal, giving Unilever a 65 percent stake and 15.7 billion dollars in cash. Shares declined following investor criticism of the deal structure. The move streamlines Unilever into a household and personal care-focused company.
Oracle is laying off thousands of employees as part of a 2.1 billion dollar fiscal 2026 restructuring while increasing investment in AI infrastructure to compete with rivals like Alphabet and Amazon. Shares rose more than 5 percent despite a 29 percent year-to-date decline, signalling confidence in long-term growth.
Snap Inc. surged 14 percent after activist investor Irenic Capital Management acquired a 2.5 percent stake and proposed operational changes, including restructuring its Specs unit, workforce and pay adjustments, a stock buyback, and greater AI use for ad monetisation. The board welcomed shareholder input.
Constellation Energy shares fell after issuing 2026 EPS guidance of 11 to 12 dollars, below expectations. Despite plans for 3.9 billion dollars in growth capital, a 5 billion dollar buyback, and projected base EPS growth over 20 percent through 2029, analysts called the outlook mixed. The company continues integrating the Calpine acquisition and expanding nuclear contracting.
Analyst Insights and Market Outlook
Wells Fargo cut its S&P 500 year-end target to 7,300 from 7,800 due to the Iran war as a key risk, though it remains structurally bullish. Despite near-term headwinds from inflation, stagflation fears, and geopolitical tensions, resilient equity flows, valuation resets, US energy advantages, and a restocking cycle support longer-term growth.
Barclays sees US equities as attractive despite high cyclically adjusted valuations, with the S&P 500 at 19 times next twelve months earnings offering a good entry point versus expected 15 percent EPS growth in 2026. Support comes from resilient earnings, improving macro conditions, and a broad capital expenditure cycle, though risks from Middle East tensions remain.
Goldman Sachs maintains its forecast that gold could reach 5,400 dollars per ounce by end-2026, driven by expected Federal Reserve rate cuts, a return to normal speculative positioning, and ongoing central bank buying. Analysts note recent selling has unwound overbought positioning, leaving the market in cleaner shape, though downside risks remain if tensions persist.
Citi lowered its price target for Micron to 425 dollars following a 6 percent drop in DDR5 16GB DRAM spot prices. Despite this, earnings forecasts remain supported by long-term agreements with hyperscalers. Citi maintained a Buy rating, highlighting AI-driven demand, KV cache importance, and structural memory growth, even amid short-term pricing pressures.
Citi also initiated coverage of Rheinmetall with a neutral rating and €1,480 target, citing peak ammunition demand as transitory. Sales and adjusted EBIT are projected to rise through 2028, but long-term artillery demand will decline post-stockpile. Bull and bear scenarios range from €1,910 to €1,135, with upside from Naval revenues, cash flow, and sustained growth.
Deutsche Bank upgraded Diageo to Buy from Hold, lowering its price target to 1,650p due to revised earnings and margin pressure. FY27–28 earnings are expected below consensus, with significant margin reductions in North America and Europe. The bank anticipates 3–4 percent organic sales growth and 5–7 percent operating profit growth beyond FY28, despite industry headwinds.
Upcoming Economic Data
Key US economic releases include:
- March MBA mortgage applications
- Purchase and refinance indices
- February retail sales and inventories
- ADP employment change
- ISM and S&P Global manufacturing PMIs
- Construction spending
- EIA data on crude, gasoline, distillate inventories, imports, and refinery runs
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