The S&P 500 Index is up 0.03% today, while the Dow Jones Industrial Average is down 0.11%. The Nasdaq 100 Index has gained 0.63%. This market movement follows reports of Iran’s indirect communications with the U.S. regarding the ongoing conflict, sparking optimism. Additionally, the U.S. labor market showed resilience with February ADP employment data exceeding expectations, reflecting an increase of 63,000 jobs, surpassing the anticipated 50,000.
Crude oil prices have dropped by over 1% amid geopolitical tensions, particularly after President Trump assured the free flow of energy through the Strait of Hormuz, which Iran’s Islamic Revolutionary Guard Corps has threatened to close. Goldman Sachs estimates a risk premium for crude oil at $18 per barrel due to potential supply disruptions in the Strait. Meanwhile, U.S. mortgage applications rose by 11% in the week ending February 27, with average 30-year fixed mortgage rates unchanged at 6.09%.
In corporate news, over 90% of S&P 500 companies have reported Q4 earnings, with 73% exceeding expectations. Earnings growth is estimated at 8.4%, marking ten consecutive quarters of year-over-year growth. The upcoming week will focus on U.S.-Iran relations and crucial economic data releases, including the ISM services index and employment figures.
