S&P 500: Optimism returns with deal hopes – Deutsche Bank

Deutsche Bank analysts report that the S&P 500 has recovered above its pre‑strike level as markets price a temporary conflict and potential US–Iran talks. The index is up over 8% from its late‑March low, with cyclical sectors such as information technology and financials leading gains, while futures point to modest additional upside.

Index back above pre-strike levels

"The market optimism has continued this morning, with oil prices falling back amidst growing hopes that the US and Iran might still reach some kind of deal."

"Indeed, Brent crude is down another -1.61% overnight to $97.76/bbl, which is easing fears about a stagflationary shock, and significantly, the S&P 500 (+1.02%) closed above its pre-strike level on February 27."

"In fact, the index is now up +8.55% since its closing low on March 30, making this its second-best run over 9 sessions in the past 4 years, only surpassed by the bounceback after Liberation Day last year."

"And cyclical stocks outperformed, with information technology (+1.72%) and financials (+1.73%) leading the gains for the S&P 500, though Goldman Sachs (-1.87%) fell back after their FICC revenue was beneath consensus expectations in Q1."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)