Stock Market Update

Equity futures point to a higher opening this morning to start a holiday-abbreviated week. The major averages are coming off their fifth consecutive losing week, with each index retreating more than 1.5% in Friday’s action.

The previous losses were largely driven by broad uncertainty, with oil prices remaining elevated amid the conflict in Iran, weighing on inflation expectations and the projected monetary policy outlook. There is also a technical component to the recent weakness, as the major averages were unable to reclaim their 200-day moving averages during an early-week rally. The DJIA has officially entered correction territory.

This morning’s optimism seems to be tied to developments on the geopolitical front. Bloomberg reported yesterday that President Trump said Iran “gave” the U.S. most of the demands outlined in a 15-point peace proposal to end the war, according to Bloomberg. However, the president did not specify what these demands were. The situation remains murky, with President Trump recently stating that the U.S. will destroy Iran’s energy infrastructure on Kharg Island if a deal is not reached soon, according to CNBC.

WTI Crude Oil is back above the $100 per barrel mark, currently up $1.90 (+1.9%) to $101.54 per barrel.

There is no economic data of note today.

In corporate news:

• President Trump signed an order to pay TSA agents after Congress failed to pass a resolution to fund the DHS, according to CNBC. 
• Sysco (SYY 76.27, -5.53, -6.8%) trades lower in the premarket after agreeing to acquire Jetro Restaurant Depot in a $29.1 billion deal

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly lower note with South Korea's Kospi (-3.0%) and Japan's Nikkei (-2.8%) leading to the downside. Japan's Nikkei: -2.8%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: +0.2%, India's Sensex: -2.2%, South Korea's Kospi: -3.0%, Australia's ASX All Ordinaries: -0.6%.

In news:

• There was little apparent change to the situation in the Middle East over the weekend, leaving some recent concerns in place.
• The Japanese yen briefly hit its lowest level against the dollar since mid-2024 before bouncing.
• The rebound followed the release of the Bank of Japan's latest Summary of Opinions, which did not show opposition to additional rate hikes.
• There was an increase in expectations for a rate hike from the Reserve Bank of Australia.
• Companies listed in China and Hong Kong reported a 3.55% yr/yr increase in profits for fiscal 2025.

In economic data:

• India's February Industrial Production 5.2% yr/yr (expected 4.7%; last 4.8%) and February Manufacturing Output 6.0% m/m (last 4.8%)

Major European indices trade in the green despite a continued rise in energy prices that has Brent crude approaching $110/bbl. STOXX Europe 600: +0.5%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.9%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.2%.