NEW YORK, March 10 (Xinhua) — United States (US) stocks ended higher on Monday, recovering from early session heavy losses, as indications of a potential swift conclusion to the ongoing US-Israeli strikes on Iran triggered a sharp pullback in global oil prices, reported Xinhua.
The Dow Jones Industrial Average rose 0.5 per cent, to 47,740.8. The S&P 500 added 0.83 per cent to 6,795.99. The Nasdaq Composite Index increased by 1.38 per cent, to 22,695.95.
Nine of the 11 primary S&P 500 sectors ended in the green. Technology and communication services led the gainers, advancing 1.8 per cent and 1.13 per cent, respectively.
Meanwhile, the financials and energy sectors led the laggards, declining 0.52 per cent and 0.43 per cent, respectively.
The broader market turned positive in afternoon trading after remarks from President Donald Trump suggested the conflict with Iran could end sooner than anticipated.
He reportedly told a CBS journalist that “the conflict is very complete, pretty much.”
The geopolitical developments prompted a dramatic reversal in energy markets.
West Texas Intermediate crude oil futures for April delivery, which had surged past US$119 per barrel in overnight trading for the first time since 2022, settled at US$94.77 a barrel.
The sudden drop in oil prices immediately relieved travel and leisure equities, which are highly sensitive to fuel costs.
Shares of major US carriers, including Delta Air Lines, United Airlines, and American Airlines, alongside cruise operators such as Norwegian Cruise Line, Carnival, and Royal Caribbean, erased earlier losses to finish higher.
In the technology sector, all of the major “Magnificent Seven” stocks rebounded from early declines to post gains.
Additionally, memory chip manufacturers saw significant upward movement, with SanDisk and Western Digital finishing up nearly 12 per cent and seven per cent, respectively.
Despite the session’s optimism, some market experts warned that investors might underestimate the risks of a broader economic recession or an equity market correction.
Analysts at Deutsche Bank noted that a continuous stream of global shocks over the past four years has left investors somewhat desensitised to short-term disruptions, leaving overall equity positioning slightly below neutral.
Conversely, analysts at Morgan Stanley offered a more optimistic outlook, forecasting that US equities will likely remain constructive for at least another year despite the elevated geopolitical risks.
“We think we’re closer to the end of this rolling correction than the beginning and remain constructive over the next 6-12 months,” analysts said.
