Tonight's Highlights | De-escalation Signals Bolster Markets; Global Equities Surge as Crude Retraces
U.S. index futures extended their gains on Wednesday as optimism mounted over a potential resolution to the U.S.-Iran conflict. Global markets surged in lockstep, with European benchmarks rallying sharply alongside a notable retreat in international oil prices.
President Donald Trump told reporters at the White House on Tuesday that he expects U.S. forces to withdraw from Iran within "two to three weeks," emphasizing that such a move may not require a formal accord. The President is scheduled to deliver a formal televised address on the Iran situation at 9:00 AM Thursday, Beijing Time (9:00 PM ET Wednesday).
Concurrently, Iranian President Masoud Pezeshkian signaled Tehran’s willingness to end hostilities, provided its demands are met—specifically, ironclad guarantees against future aggression.
The growing prospect of a swift conclusion to the conflict sent Brent crude futures tumbling, briefly dipping below the $100-per-barrel mark overnight. As of press time, Brent was trading down over 2% at approximately $101.50. Meanwhile, spot gold jumped nearly 2% to $4,755.40 per ounce on lingering volatility.
Buoyed by this optimism, U.S. equities recorded their largest single-day gain in 10 months on Tuesday, marking a strong finish to the first quarter. This momentum carried into Wednesday’s Asian session, with the Nikkei and Kospi jumping 5% and 8%, respectively.
Despite the rally, analysts warn of persistent risks. Reports suggest the U.A.E. is preparing to assist the U.S. in reopening the Strait of Hormuz by force if necessary, which would mark its first direct military involvement in the conflict. Analysts at DNB Carnegie noted that recent U.S. troop reinforcements and the deployment of a third aircraft carrier to the region keep the "escalation option" firmly on the table.
Karen Finerman, CEO of Metropolitan Capital Advisors, suggested the current rally may be driven by "window dressing" rather than a fundamental shift. "I tend to believe the oil price reflects the reality," Finerman noted. "While we are seeing an oversold bounce, much of this is quarter-end effect. I am skeptical about the sustainability of this move."
Corporate
OpenAI Hits $852B Valuation: OpenAI announced on March 31 the completion of a $122 billion funding round, bringing its post-money valuation to a staggering $852 billion. The AI pioneer reported quarterly revenue reaching $1 billion by late 2024, with monthly revenue now scaling to $2 billion.
Microsoft’s Energy Frontier: Microsoft is in exclusive negotiations with Chevron and Engine No. 1 for a $7 billion, 2,500 MW natural gas power complex in West Texas to sustain its massive data center expansion. Separately, Microsoft pledged $5.5 billion toward AI and cloud infrastructure in Singapore through 2029.
Nike’s Post-Market Slump: Nike shares tumbled over 11% in pre-market trading following a dismal full-year outlook. JPMorgan downgraded the stock to Neutral and slashed its price target from $86 to $52.
Apple’s Siri Overhaul: Reports indicate Apple is testing a multi-request processing feature for Siri, slated for release with iOS 27 later this year, aiming to compete with advanced generative AI assistants.
Oracle’s Restructuring: Following a 25% YTD decline in share price due to aggressive AI infrastructure spending, Oracle has reportedly commenced layoffs affecting thousands of employees.
TSMC’s Japan Expansion: TSMC plans to begin mass production of advanced 3nm chips at its second Kumamoto fab by 2028, marking Japan’s entry into the 3nm manufacturing era.