Morning Preview: March 25, 2026
Market Overview
US futures are set for a sharply higher open following reports that the US has approached Iran with a plan to halt ongoing fighting, which has significantly impacted stock, bond, and commodity markets. This development has raised cautious hopes for a resolution to the conflict. As a result, oil prices have retreated nearly 6%, with WTI crude falling to around $87 and Brent crude trading below $95. The decline in oil prices is positively affecting travel and leisure stocks, while energy and chemical stocks, which have been recent market leaders, are seeing declines. Precious metals are also experiencing a bounce, with gold and silver looking to end a 10-day losing streak.
Key Market Indices
- Dow: Up 387.00 points (0.83%) to 46,802
- S&P 500: Up 52.00 points (0.79%) to 6,658
- Nasdaq: Up 232.50 points (0.96%) to 24,446
Recent Market Activity
On Tuesday, the S&P 500 and Nasdaq closed lower, but overall market breadth showed advancers leading, with Smallcaps outperforming. The S&P 500 closed down 0.4%, while the Dow Jones Industrial Average fell 0.18% and the Nasdaq Composite dropped 0.84%. In Asian markets, the Nikkei Index surged by 1,497 points, while European markets also saw significant gains, with the German DAX up 336 points and the FTSE 100 up 108 points.
Economic Calendar
Key economic data to be released today includes:
- 7:00 AM ET: MBA Mortgage Applications Data
- 8:30 AM ET: Current Account for Q4
- 8:30 AM ET: Import Prices M/M for February
- 8:30 AM ET: Export Prices M/M for February
- 10:30 AM ET: Weekly DOE Inventory Data
- 1:00 PM ET: US Treasury to sell $70B in 5-year notes
- 1:00 PM ET: US Treasury to sell $44B in 7-year notes
Sector News
Consumer Sector
GameStop reported Q4 net sales of $1.104 billion, down from $1.28 billion year-over-year. General Motors was upgraded to Outperform by Wolfe Research. MercadoLibre announced a $10.9 billion investment in Brazil, focusing on logistics and e-commerce expansion.
Energy, Industrials, and Materials
AAR Corp. reported better-than-expected earnings, raising its sales growth outlook. Chevron is on a seven-day winning streak, while several space-related stocks rallied on news of a potential SpaceX IPO.
Financials
Crypto stocks fell after reports of a compromise on legislation affecting stablecoin rewards. Robinhood approved a new share repurchase program worth up to $1.5 billion.
Healthcare
Merck is nearing a $6 billion all-cash deal to acquire Terns Pharmaceuticals, aiming to enhance its pipeline ahead of the patent expiry for its cancer drug Keytruda.
Technology, Media & Telecom
Arm Holdings shares surged after announcing plans to sell its own chips, with expectations of reaching $15 billion in annual sales. Intel and AMD have raised CPU prices again, indicating a worsening supply shortage.
Conclusion
The market is reacting positively to geopolitical developments, particularly regarding US-Iran relations, which could lead to a resolution of the ongoing conflict. Investors are closely monitoring economic data releases and sector-specific news as they position themselves for the trading day ahead.