Morning Bid: Global markets take a breath

• U.S. markets showed strength Wednesday with Nasdaq up 1.29% and S&P 500 rising 0.78%, supported by strong economic data including higher-than-expected private payrolls and ISM non-manufacturing PMI hitting a three-year high
• Broadcom reported first-quarter revenue of $19.31 billion (up 29%) and forecast AI revenue exceeding $100 billion next year, positioning itself as a strong competitor to Nvidia
• Despite the market bounce, geopolitical risks remain elevated as oil topped $83 per barrel, gold rallied on safe-haven demand, and the U.S. Senate backed expanded presidential war powers against Iran

Market Summary: Global Markets Take a Breath

Market Performance:

Global markets experienced a relief rally on Thursday amid ongoing Middle East tensions. South Korea's KOSPI surged nearly 10%, while Japan's Nikkei gained 2%. U.S. markets showed strength Wednesday with the Nasdaq up 1.29% and S&P 500 rising 0.78% in a tech-led rally.

Geopolitical Context:

Markets found temporary relief as the Middle East conflict entered its sixth day. The New York Times reported Iranian intelligence reached out to the CIA seeking resolution after Saturday's attacks. The U.S. offered naval escorts and insurance coverage to help reopen the Strait of Hormuz, though analysts warn Iran could disrupt the waterway for months. The U.S. Senate authorized President Trump with largely unbounded power to direct military operations against Tehran.

Commodities & Currencies:

Oil prices climbed over 2% Thursday on continued supply disruption concerns, with Brent crude topping $83 per barrel. Gold rallied on safe-haven demand, while the dollar strengthened after retreating from three-month highs.

Economic Data:

U.S. private payrolls exceeded expectations for February. ISM's non-manufacturing PMI reached a three-year high. Investors await Friday's crucial non-farm payrolls report and Thursday's weekly jobless claims.

Corporate News:

Broadcom reported first-quarter revenue of $19.31 billion, up 29% year-over-year, and projected revenue exceeding $100 billion next year. The chip designer is emerging as a strong Nvidia competitor, securing deals with companies including Meta.

Market Outlook:

Despite the rally, uncertainty persists given the potential for prolonged Middle East disruption. U.S. stock futures edged lower ahead of additional labor market data.