[Market Summary]
The three major U.S. indices closed higher on Wednesday as rumors of "backchannel contacts" between the U.S. and Iran sparked hopes for an earlier-than-expected resolution to the conflict. Stabilizing oil markets, following U.S. government intervention, further fueled the rally.
| Index | Closing Price | Change (pts) | Change (%) |
| Dow Jones | 48,739.41 | +238.14 | +0.49% |
| S&P 500 | 6,869.50 | +52.87 | +0.78% |
| Nasdaq | 22,807.48 | +290.79 | +1.29% |
[Macro & Geopolitical Highlights]
Geopolitical Relief: The New York Times reported that Iran’s intelligence agencies proposed negotiations to the CIA through a third party. Treasury Secretary Scott Bessent also signaled stability by announcing safe passage measures for tankers in the Strait of Hormuz.
Economic Strength:
ADP Private Employment: Increased by 63,000 in February (Expected: 48,000), the largest jump since July 2025.
ISM Services PMI: Hit 56.1 in February (Expected: 53.5), marking the highest level since July 2022 and 20 consecutive months of expansion.
Volatility & Currency: The VIX dropped 10.27% to 21.15. The Dollar Index retreated 0.3% to 98.93 as safe-haven demand cooled.
[Featured Stocks: Big Tech & AI]
■ Nvidia (NVDA)
Bernstein: Argues NVDA's valuation is "cheap." While memory stocks surged in early 2026, processors lagged due to AI bubble fears. Bernstein claims that if an AI bubble were real, memory stocks should have also fallen; hence, NVDA remains undervalued.
Morgan Stanley: Highlighted that while the stock has moved sideways for two quarters, earnings forecasts were raised by 38%, offering a prime entry point.
■ Microsoft (MSFT)
Analyst Inflows: Top CIOs from Short Hills Capital and Blue Line Capital confirmed they increased MSFT positions.
Valuation: MSFT is currently trading two standard deviations below its long-term average P/E ratio, which analysts view as a "strong support level" and a long-term buying opportunity.
■ Tesla (TSLA)
BofA Buy ($460 TP): Expects Tesla to lead the Robotaxi market due to its scalability and lower hardware costs.
Expansion: Plans to add 7 more cities to its Robotaxi service in H1 2026. Tesla’s camera-only approach is deemed more cost-effective than LiDAR-based competitors.
■ Broadcom (AVGO) - After-hours Earnings Surprise
Q1 Results: EPS of $2.05 (vs. $2.03 exp) and Revenue of $19.31B (vs. $19.18B exp).
AI Surge: AI-related revenue doubled to $8.4B. Q2 AI semiconductor revenue is projected at $10.7B.
Shareholder Return: Announced a new $10 billion share buyback program through 2026.
[Industry & Sector News]
Crypto: Bitcoin surged over 7% to break $71,269. Trump expressed support for the crypto industry, specifically pressuring banks regarding stablecoin yields and the CLARITY Act. Stocks like MSTR, COIN, and HOOD rallied.
Energy (XOM, CVX, OXY): Most gains were erased as oil prices stabilized on ceasefire rumors. WTI closed at $74.66 (+0.13%).
Industrial Metals (FCX, RIO): Jefferies expects a long-term "outperform" for metal miners as global supply chain risks drive strategic inventory building (copper).
Cybersecurity: CrowdStrike (CRWD) beat expectations with strong FY2027 guidance. Okta (OKTA) beat Q4 results but shares fluctuated in after-hours due to conservative Q1 revenue guidance.
Retail: Ross Stores (ROST) saw target price hikes after strong 9% same-store sales growth. Abercrombie & Fitch (ANF) fell on weak 2026 growth forecasts.
AI Infrastructure: CoreWeave (CRWV) partnered with Perplexity to run next-gen inference workloads on Nvidia GB200 clusters.
[Other Notable Movers]
Veeva Systems (VEEV): Up 8% on positive FY2027 guidance.
KKR: Surged as the CEO and board members bought $10.8M in shares recently, signaling confidence.
Whirlpool (WHR): Recovered despite criticism from Appaloosa Management regarding recent stock/preferred share issuance, as investors found the valuation (10x P/E) too cheap to ignore.
Dow (DOW): Upgraded to Overweight by KeyBanc, citing potential benefits from ethylene supply disruptions in the Middle East.
