Market Update Summary - March 11, 2026

Overview

The North American stock markets have shown resilience despite recent volatility stemming from ongoing geopolitical tensions in the Middle East, particularly the US-Iran-Israel conflict. This update reviews the current market conditions, focusing on key developments in oil prices, equity performance, and economic indicators.

Market Resilience Amid Conflict

Despite a significant spike in oil prices from $92 to $120 per barrel at the start of the week, the markets quickly rebounded, with oil prices stabilizing in the $80 to $90 range. The volatility was exacerbated by drone attacks on tankers in the Strait of Hormuz, which heightened market anxiety.

Oil Prices and Market Sentiment

Oil prices have been a major driver of market sentiment, with the recent attacks contributing to a spike in WTI prices. The ongoing military operations and threats from Iran to disrupt shipping in the Strait of Hormuz suggest that oil prices may remain elevated as long as the conflict persists.

Equity Market Performance

While the Dow Jones and Toronto Stock Index experienced declines, the Nasdaq has shown a surprising 1% increase, buoyed by a rebound in technology stocks. This indicates a divergence in sector performance, with tech stocks being less affected by rising fuel costs.

Currency Movements

The US Dollar Index has remained resilient, although it has lost some ground against commodity-linked currencies like the Australian and Canadian Dollars. The Canadian Dollar has been particularly strong, benefiting from the rise in oil prices.

Economic Indicators

Recent economic data has been mixed, with a significant miss in Non-Farm Payrolls and a drop in the US Consumer Price Index (CPI) to 2.4% year-over-year. These indicators could influence future monetary policy, particularly with upcoming releases of Core PCE data and Canadian employment figures.

Looking Ahead

Traders are advised to monitor developments in the Middle East closely, as geopolitical tensions continue to impact market dynamics. The upcoming economic calendar is packed with important data releases that could further influence market sentiment.

Conclusion

In summary, while the North American markets have shown resilience in the face of geopolitical turmoil, ongoing volatility in oil prices and mixed economic data suggest that traders should remain cautious and vigilant.