Stock Market Update

Equity futures point to a higher opening this morning after the major averages gave back a chunk of Monday's advance in yesterday's session, though the losses were relatively modest. The market continues to react to developments on the geopolitical front, with The New York Times reporting yesterday evening that the U.S. has sent Iran a 15-point peace plan that includes a month-long ceasefire. 

Peace talks could begin as soon as Thursday, though the U.S. and Iran are reportedly still far apart on some issues. Additionally, The Telegraph reports that Vice President J.D. Vance will lead the negotiations. 

Crude oil is currently down $5.08 (-5.5%) to $87.27 per barrel, adding to the upbeat tone this morning. 

The market is currently receiving a modest batch of earnings reports this morning, though corporate news flow continues to be light. 

On the data front, investors will receive the Q4 current account balance (Breifing.com consensus -$242.3 billion) as well as February import and export prices at 8:30 a.m. ET. The weekly MBA MOrtgage Applications Index for the week ended March 21 decreased 10.5%, from a prior decrease of 10.9%. 

In corporate news:

• California is at risk of a fuel crisis, according to Bloomberg. 
• SpaceX IPO prospectus is expected soon, according to The Information. 
• Arm (ARM 150.70, +15.74, +11.7%) expects chip sales to reach $15 billion in five years, according to CNBC. 
• Meta Platforms (META 599.95, +6.33, +1.1%) is reportedly targeting a $9 trillion valuation, according to The Wall Street Journal. 
• NVIDIA's (NVDA 177.98, +2.78, +1.6%) exports to China are in jeopardy of being blocked, according to Financial Times.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a broadly higher note. Japan's Nikkei: +2.9%, Hong Kong's Hang Seng: +1.1%, China's Shanghai Composite: +1.3%, India's Sensex: +1.6%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +2.0%.

In news:

• There was some speculation that China's sovereign wealth fund will be allocating new money to U.S.-based managers like Blackstone and TPG.
• Japan's Diplomatic Blue Book for 2026 downgraded the view of relations with China to strategic and mutually beneficial from "one of its most important."
• SK Hynix is reportedly seeking to list its shares in the U.S.

In economic data:

• South Korea's March Consumer Confidence 107.0 (last 112.1)
• Australia's February Monthly CPI Indicator 3.7% (expected 3.8%; last 3.8%)

Major European indices trade on a firmly higher note amid some hopes for a deescalation in the conflict with Iran. STOXX Europe 600: +1.5%, Germany's DAX: +1.7%, U.K.'s FTSE 100: +1.4%, France's CAC 40: +1.6%, Italy's FTSE MIB: +1.7%, Spain's IBEX 35: +1.6%.

In news:

• European Central Bank President Lagarde said that the bank will not act before it has sufficient information while policymaker Lane said that the market is expecting two big inflation readings in March and April before normalizing in the following months.

In economic data:

• Germany's March ifo Business Climate Index 86.4 (expected 86.2; last 88.4). March Current Assessment 86.7 (expected 86.0; last 86.7) and Business Expectations 86.0, as expected (last 90.2)
• U.K.'s February CPI 0.4% m/m, as expected (last -0.5%); 3.0% yr/yr, as expected (last 3.0%). February Core CPI 0.6% m/m (expected 0.5%; last -0.6%); 3.2% yr/yr (expected 3.1%; last 3.1%). February Input PPI 0.8% m/m (expected 0.5%; last 0.3%) and Output PPI -0.5% m/m (expected 0.3%; last 0.0%). February House Price Index 1.3% yr/yr (expected 1.7%; last 1.9%) o Spain's February PPI -7.0% yr/yr (last -2.9%)
• Swiss March ZEW Expectations -35.0 (last 9.8)