Stocks Rally as US Economic Strength Outweighs Iran War Concerns

Oil Market - The Strait of Hormuz remains closed due to threats from Iran's Islamic Revolutionary Guard Corps, impacting oil production in Iraq and Saudi Arabia's refinery capacity [1] - Goldman Sachs estimates a real-time risk premium for crude oil at $18 per barrel due to the potential six-week halt in tanker traffic through the Strait of Hormuz [1] Stock Market - Stock gains are limited amid global trade tensions, with proposed 15% tariffs on US imports potentially taking effect this week [3] - Stocks are supported by reports of indirect contact between Iran and the US for negotiations, boosting hopes for a resolution to the conflict [4] - The S&P 500 Index is up by 0.87%, the Dow Jones Industrial Average is up by 0.66%, and the Nasdaq 100 Index is up by 1.52% [4] Economic Indicators - The US February ADP employment report showed an increase of 63,000 jobs, exceeding expectations of 50,000 [5] - The ISM services index unexpectedly rose by 2.3 to 56.1, indicating the strongest pace of expansion in 3.5 years [6] - The Eurozone January PPI rose by 0.7% month-over-month and fell by 2.1% year-over-year, stronger than expectations [11] Earnings Reports - Over 90% of S&P 500 companies have reported earnings, with 73% beating expectations and an expected earnings growth of 8.4% in Q4 [8] - Seagate Technology Holdings is up more than 8%, and Western Digital is up more than 7% due to positive market movements [12] - Moderna is up more than 10% after settling litigation related to its Covid delivery technology [16]