Morning Bid: Back to business

• Brent crude traded around $96/barrel and WTI at $92/barrel on Wednesday, down from recent highs, as Trump indicated progress in Iran talks despite ongoing U.S. naval blockade of the Strait of Hormuz
• JPMorgan and Citi beat earnings expectations with strong trading revenue, while ASML exceeded forecasts citing AI-driven demand; the Nasdaq jumped 2% and S&P 500 rose 1% on Tuesday
• IMF maintained its 2027 global growth forecast assuming a short-lived conflict, while U.S. producer prices rose less than half of economists' expectations, providing reassurance on inflation

Market Summary: Back to Business

Market Performance:

Global stock markets rallied as Middle East tensions eased, with the Nasdaq jumping 2% and the S&P 500 rising 1% to near record highs on Tuesday. Asian markets extended gains Wednesday, with Japan's Nikkei up 0.9% and South Korea's KOSPI surging 3%. The MSCI all-country index (ex-U.S.) hit its best levels since March 2, while the VIX volatility index returned to February levels.

Energy Markets:

Brent crude traded around $96/barrel and WTI at $92/barrel on Wednesday, both below $100, following positive comments from President Trump about Iran negotiations despite ongoing U.S. naval blockade of the Strait of Hormuz. The dollar shed safe-haven gains, hovering near war-period lows.

Corporate Earnings:

Strong first-quarter results boosted sentiment. JPMorgan exceeded profit expectations on robust trading revenue and dealmaking. Citigroup posted its strongest quarterly revenue in a decade. ASML, the world's largest chipmaking tool supplier, beat earnings expectations and upgraded guidance on AI-driven demand. Bank of America and Morgan Stanley were scheduled to report.

Economic Data:

U.S. producer prices rose due to the energy shock but increased only half what economists expected—a reassuring sign. The IMF downgraded global growth forecasts Tuesday but kept 2027 projections unchanged, assuming a short-lived conflict.

Market Outlook:

Investors refocused on earnings and economic fundamentals as geopolitical tensions appeared to ease. The world economy's declining fossil fuel dependency helped limit the March oil shock's impact on growth forecasts, with renewable energy installations surging due to falling costs.