He conflict in the Middle East was the main set throughout the month of March carrying the oil price above $100. After back and forth, it seems that there could be a diplomatic solution of the conflict after the statements of Donald Trump and his Iranian counterpart Masoud Pezeshkian. However, Wall Street does not completely remove the uncertainty but the DOW JONES Ind Average, S&P 500 y NASDAQ 100 close higher in a +0.48% to 46,565, +0.72% to 6,575 pointsand +1.16% to 21,840 points respectively.
The recent bullish momentum brought some optimism among Wall Street analysts, according to Yahoo Finance.
“If Trump declares mission accomplished, so do we with respect to our stock market correction forecast,” they wrote. Ed Yardeni and Elias Griepentrog Tuesday night, adding that his signature will likely reduce his probability of recession from 35% to ​​20% once there is greater clarity about whether the conflict in the Middle East is truly over.
“However, we maintain our goal of 7,700 points for the S&P 500 at the end of the year and our commitment to our base case of a promising 2020s,» the note states.
Los UBS strategists They highlighted that the strong rally in stocks in the last 24 hours demonstrates how a resolution to the conflict (or even the hope of one) can quickly drive markets higher, “reinforcing the importance that long-term investors keep their investments and position themselves to take advantage of growth opportunities.”
“We continue to believe that global stock markets will close the year at levels higher than current ones,” he wrote. Ulrike Hoffmann-Burchardi, chief investment officer for the Americas at UBS Global Wealth Management.
Earlier this year, UBS predicted that the S&P 500 could reach 7,300 points in June and the 7,700 at the end of the year.
However, since Bank of America have indicated that they expect a lower growth andhigher inflation due to the increase in energy prices according to Yahoo Finance.
Analysts at Bank of America project lower growth, higher inflation and a full-year oil price of $100 a barrel as a result of the war in Iran, even if it ends in the coming weeks.
“The dividend of the war so far: a slight stagflation,” they wrote. BofA economist Claudio Irigoyenand his team in a note on Wednesday, referring to the economic phenomenon of higher inflation coupled with lower growth.
…Economists predict U.S. growth will take a 50 basis point hit, until 2.3% in 2026. It is expected that the general inflation reach the 3.6% in 2026compared to the current 2.8%. TO global leveleconomists also revised down the gross domestic product at 3.1% and raised the inflation expectations at 3.3%.
“This is consistent with a stagflationary crisis that would impact inflation sooner and more significantly than GDP growth, according to our new base case, in which oil prices remain near $100 per barrel for the rest of 2026,” Irigoyen wrote.
With regards to economic data we had the March Manufacturing PMI with a result of 52.3 compared to the expected 52.4, March ISM Manufacturing PMI with 52.7 compared to 52.3, ISM manufacturing employment index for March a 48.7 compared to the expected 49.0, March ISM Manufacturing Price Index a 78.3 compared to the expected 74.0, January monthly business inventories -0.1% compared to the expected 0.0%, Retail inventories excluding automobiles for January with 0.3% compared to the previous 0.4%, IEA crude oil inventories with 5,451M compared to the expected 1,800M, IEA weekly Cushing crude oil inventories with 0.520M compared to the previous 3.421M and the GDPNow de la FED de Atlanta (1T) with 1.9% compared to the expected 2.0%.
Among the winning actions we have Western Digital (+10.06% to $297.70), Micron Technolog (+8.87% to $367.79) and Boeing Co (+4.20% to $207.38)
Western Digital rises after the improvement of recommendation by Bernstein of “market performance” to “outperform” with a target price of 170 a 340dollars because Google TurboQuant has created a purchase opportunity that is disconnected from the underlying fundamentals, according to Investing.
“TurboQuant, a compression algorithm presented by Google Research last week, is targets only the KV cache used during AI inference and it doesn’t have none“incidence on the demand for hard drives”Bernstein noted. Its impact on flash memory NANDwhich is used only to flush cold caches, is described as negligible.
«There is no impact on HDD demand,» said the analyst Mark Newman in a note.
Bernstein has also become more generally optimistic about the storage sector. The broker now expects the combined revenues of Western Digital and Seagate Hldgs grow at one 24% CAGR from fiscal year 2025 to 2030backed by 24% growth in bits and stable prices.
Micron rises at the possibility of a end of diplomatic conflict in the Middle Eastwhich contributed to a rebound in the general market and the semiconductor sector in particular.
Boeing go up since Wells Fargo has initiated coverage on the security with a rating of “overweight” and a target price in 250 dollarsaccording to Investing.
The firm bases its $250 price target on a 20x free cash flow multiple applied to your forecast for 2028. Wells Fargo expects Boeing to achieve markedfree cash flow recovery as production normalizes. The aerospace giant is currently showing a negative free cash flow of $1.88 billion in the last twelve months, underscoring the magnitude of the change that Wells Fargo anticipates.
The firm sees upside potential derived from higher production rates of the MAX and 787 along with a great working capital opportunity. The program 777X represents a significant drag on free cash flow in the near term.
Wells Fargo expects the impact of the 777X to be significantly reversed with improvements in thelearning curve As production rates reach 3-4 aircraft per month towards the end of the decade.
Among the losing stocks we have Diamondback Eng (-3.61% to 190.65 dollars), Nike -B- (-15.52% to $44.63) and Chevron (-4.62% to $197.35)
Diamondback y Chevron They fall due to the possible diplomatic resolution of the conflict in the Middle East, which brought a correction in the price of oil. Which impacts the progress that energy firms have made in the face of the increase in the price of crude oil.
Nike falls after the fiscal 2026 third quarter resultswhich denoted a drop in sales in China and a disappointing forecast for the fourth quarter as we pointed out in the opening.
Los Oil futures WTI caen one -1.78% at 99.58 dollars and the Brent -2.89% at 100.97 dollars.
He Oro upload a +2.39% to $4,790 per ounce and the Plata +0.54% to $75.32.
The pair EURUSD upload a +0.29% a 1.1587.
Bitcoin upload a +0.22% to $68,089.
He US 10-year bond yield they go up a +0.44% a 4.330 already 30 years +0.45% to 4,914.
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