On Monday, major U.S. stock indices rallied over 1% amidst easing geopolitical tensions regarding Iran. Despite a drop in major index futures by more than 1% the previous evening, the market reversed course significantly, with the Nasdaq 100 Index ETF (QQQ) recording trading volumes 54% above average, indicating strong accumulation.
Key factors contributing to this rebound include statements from President Trump suggesting a brief conflict duration, leading to a sharp decline in U.S. crude oil prices, which fell below $90 after peaking at $120 per barrel. Investor sentiment also shifted; the CNN Fear & Greed Index indicated the highest levels of fear in 2026, often a contrarian signal for market movement.
Historically, stocks tend to bottom in mid-March, raising questions about whether this trend will repeat itself in 2026. Additionally, several tech stocks, including NVIDIA (NVDA) and Broadcom (AVGO), found support at the 200-day moving average, reinforcing bullish sentiment in the market.
