Stocks Rebound as Crude Oil Prices Move Lower

Oil Market - Crude oil prices remain high due to disruptions in global supply, with the IEA reporting a 7.5% reduction in supply caused by the war against Iran, which is expected to cut global oil supply by 8 million barrels per day (bpd) this month [1] - The closure of the Strait of Hormuz, a critical passage for about 20% of the world's oil and natural gas, has led to significant output cuts from Gulf producers [1] - Goldman Sachs warns that if the flow through the Strait of Hormuz remains depressed, crude prices could exceed the 2008 record high of nearly $150 per barrel [1] US Economic Indicators - February manufacturing production rose by 0.2% month-over-month, slightly above expectations of 0.1%, while January's production was revised upward to 0.8% from 0.6% [6] - The February Empire manufacturing survey showed a decline of 7.3 points to -0.2, which was weaker than the expected 3.9 [6] Global Economic Indicators - China's February industrial production increased by 6.3% year-to-date year-over-year, surpassing expectations of 5.3% [7] - February retail sales in China rose by 2.8% year-to-date year-over-year, also exceeding expectations of 2.5% [7] - However, the surveyed jobless rate in China rose by 0.2 to 5.3%, indicating a weaker labor market than the expected 5.1% [7] - New home prices in China fell by 0.28% month-over-month, marking the 33rd consecutive month of decline [7] Stock Market Performance - The S&P 500 Index rose by 1.23%, the Dow Jones Industrial Average increased by 1.06%, and the Nasdaq 100 Index was up by 1.30% [5] - Stocks are moving higher due to lower crude oil prices and bond yields, with crude prices down more than 3% after several oil tankers successfully navigated the Strait of Hormuz [4] Interest Rates - The 10-year T-note yield decreased by 5.1 basis points to 4.226%, supported by lower crude oil prices, which eased inflationary fears [9] - European government bond yields also fell, with the 10-year German bund yield down by 4.8 basis points to 2.934% [10]