Stocks Rise Amid Economic Surprise as Oil Whipsaws: Markets Wrap
(Bloomberg) — A report underscoring economic resilience and cooling inflationary pressures drove stocks higher at a time when the war in the Middle East clouds the growth outlook. Bitcoin topped $73,000. Oil whipsawed.
Equities rebounded after data showed the US service economy expanded at the fastest pace since mid-2022 while a price index hit an almost one-year low. A rally in tech megacaps also lifted the market, with the Nasdaq 100 jumping 1.6%. Nvidia Corp.’s Jensen Huang doesn’t see his firm’s investments in OpenAI reaching $100 billion. Crude wavered near $75 in a volatile session.
The White House said the Iranian regime has been “absolutely crushed” while the timeline for operations remained unclear, with Tehran again targeting Israel and Gulf states. Israeli and American forces followed through on pledges to bomb more targets in the Islamic Republic. The US sank an Iranian warship in international waters.
Tehran dismissed a report it had reached out to the US to negotiate an end to the conflict as “pure falsehood.”
Although risk assets face a “significant headwind” from the war and anxiety over artificial intelligence, economic strength and robust earnings mean the extent of a pullback will be limited, according to Goldman Sachs Group Inc.’s Peter Oppenheimer.
“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities,” said Scott Wren at Wells Fargo Investment Institute.
The S&P 500 climbed 0.9%. The dollar slipped 0.3%. The yield on 10-year Treasuries rose two basis points to 4.08%.
“We have been seeing a bit of a ‘squeeze’ on those bearish positions accumulated since the start of the week, as a tentative ‘risk-on’ mood crept back in,” said Fawad Razaqzada at Forex.com. “The conflict is ongoing and there’s no concrete evidence of de-escalation. This could keep pressure on risk assets for a while yet.”
Veteran strategist Louis Navellier notes that today is an example of how geopolitical risks often present short-term buying opportunities. This could change if the Iran conflict heats up, but for now, “we are in a guarded uptrend,” he added.
As US stock investors endure bouts of volatility in the wake of the war, Citadel Securities’ Scott Rubner said his fundamental analysis signals now is a time to turn bullish.
From a technical standpoint, Jonathan Krinsky at BTIG notes that the S&P 500 has reclaimed the 6,800 level, creating the possibility of a “bear trap” below that support. Still, he continues to think that “a low has been made and we should be playing offense more than defense.”
Corporate Highlights:
Wall Street expects Broadcom Inc. to report strong earnings Wednesday. Intel Corp.’s chief financial officer said server demand is still strong amid a supply shortage. Apple Inc. rolled out the $599 MacBook Neo in its biggest push yet into low-end laptops. Alphabet Inc.’s Google unveiled a new system for apps on its Android phones and tablets. What Bloomberg Strategists say…
“Markets are set up for a sharp reversal the moment an Iran conflict off-ramp turns tangible, because the war premium sitting in oil is fleeting given fundamentals.” —Michael Ball, Macro Strategist, Markets Live. For the latest analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.9% as of 3:15 p.m. New York time The Nasdaq 100 rose 1.6% The Dow Jones Industrial Average rose 0.6% The MSCI World Index rose 0.8% Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.2% to $1.1640 The British pound rose 0.1% to $1.3373 The Japanese yen rose 0.5% to 157.03 per dollar Cryptocurrencies
Bitcoin rose 8% to $73,502.82 Ether rose 10% to $2,170.9 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.08% Germany’s 10-year yield was little changed at 2.75% Britain’s 10-year yield declined three basis points to 4.44% Commodities
West Texas Intermediate crude rose 0.2% to $74.69 a barrel Spot gold rose 0.8% to $5,128.01 an ounce ©2026 Bloomberg L.P.
