Market Overview U.S. stock markets closed higher on March 5th, led by gains in the technology sector, continuing the upward momentum from the previous session's late rally. Among the top 20 stocks by trading volume, Tesla Motors received a favorable outlook from Bank of America, being termed a "leader in autonomous driving." Most popular U.S.-listed Chinese stocks rose, with Nio climbing 5.34%, while Alibaba dipped 1.73%. Amid ongoing Middle East conflicts, U.S. diesel prices reached the $4 per gallon threshold. Spot gold increased over 0.8%, and silver rose more than 1.4%. European equities rebounded as investors grew hopeful for a swift resolution to the Iran conflict.
Macro Developments The White House stated it has "decimated" the Iranian regime, while a federal judge ordered Customs to halt the calculation of IEEPA tariffs. U.S. forces have reportedly struck over 2,000 Iranian targets, with no current plans to deploy ground troops, according to the White House. A day before Iran's attacks, the Pentagon sought to bolster supplies for 13 critical minerals. Former President Trump praised U.S. cooperation with Venezuela, noting that oil has "started flowing." A federal judge has mandated the U.S. government cease calculating IEEPA tariffs for importers. The situation in the Middle East remains complex, with the U.S. asserting the Iranian regime has been "thoroughly defeated." Iran has initiated a "mosaic defense" strategy, betting that the U.S. and Israel cannot sustain a costly prolonged war. Supertankers are increasingly rerouting, potentially leading to future oil shipping capacity shortages in the Persian Gulf. Spanish media reported the country's foreign minister denied having military cooperation with the U.S. Germany's defense minister stated German forces will not participate in any war against Iran. The Federal Reserve's Beige Book indicated economic growth in most districts, though slowing expenditures impacted sales. U.S. money market fund assets hit a record high of $8.27 trillion as investors flocked to cash. The charter cost for supertankers on U.S.-to-Asia routes surged to a record $29 million. Annual production of Tomahawk cruise missiles remains under 100, raising concerns that prolonged conflict in Iran could deplete future military stockpiles for the Indo-Pacific region.
Corporate News With ammunition inventories tightening, defense contractors like Lockheed Martin are scheduled to meet at the White House. Wyoming has approved the construction of a nuclear reactor by TerraPower, a company backed by Bill Gates. Nvidia CEO Jensen Huang ruled out the possibility of a $100 billion investment in OpenAI. Some investors in Anthropic are urging a de-escalation of tensions with the Pentagon. Apple introduced a new entry-level laptop, the MacBook Neo, with a starting price of $599.
Commentary U.S. equity markets saw a broad-based rebound as economic data helped alleviate concerns over the Iran conflict. Commodities Summary: Oil prices stabilized, gold advanced, and aluminum reached its highest level since 2022. New York Forex: The U.S. dollar declined broadly as risk assets recovered. Overnight Headlines: The White House stated no immediate plans to send ground troops to Iran; Jensen Huang dismissed a potential $100 billion investment in OpenAI. Crude Oil: Prices exhibited volatility as investors monitored energy risks stemming from the Middle East. European Bond Markets: Italian government bonds led gains as risk sentiment improved.
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