Mid-Morning Look: April 01, 2026

Market Overview

U.S. stocks continued to rise, building on significant gains from the previous day. The Dow Jones Industrials, S&P 500, and Nasdaq Composite all recorded their largest daily percentage increases since May 12 of the previous year. This surge was largely attributed to President Trump's indication that he might end the U.S. military campaign against Iran, even if the Strait of Hormuz remains closed. This news led to a broad-based buying spree, pushing stocks and bonds higher, while yields fell, the dollar weakened, and precious metals gained.

Key Headlines

President Trump made further comments on his Truth Social platform, stating that Iran's new regime president is less radical and more intelligent than his predecessors, and has requested a ceasefire. Trump mentioned that the U.S. would consider this request once the Strait of Hormuz is open and clear, otherwise, he threatened to "blast Iran into oblivion." Trump is scheduled to provide an update on the Middle East conflict later in the evening.

Economic Data

• ADP National employment report indicated an increase of 62,000 private sector jobs in March, surpassing the estimate of 39,000.
• Retail sales data showed a 0.5% increase in February, exceeding the consensus of 0.3%.
• ISM manufacturing prices paid index rose to 78.3 in March, above the expected 73.0.
• Manufacturing activity index slightly improved to 52.7, while new orders index decreased to 53.5.

Sector Movements

Chinese EV Auto Data

BYDDF reported a seventh consecutive monthly sales decline, while NIO and XPENG showed significant year-over-year increases in vehicle deliveries.

Banking Sector

HSBC upgraded shares of Bank of America (BAC) and Wells Fargo (WFC) to Buy, citing a reassessment of macro risks. Citi remains HSBC's preferred universal bank.

Food Sector

Conagra Brands (CAG) reported mixed Q3 results, while Beyond Meat (BYND) faced challenges with revenue and internal controls.

Stock Performers

Gainers

• Micron Technology (MU) +9%
• NCINO +8%
• OMER +19%
• Playtika (PLAY) +19%
• PVH Corp (PVH) +12%

Laggards

• FIS -3%
• Nike (NKE) -13%
• ORIC -28%
• RH -18%
• Turning Point Brands (TPB) -21%

Market Commentary

Overall, optimism surrounding a potential resolution to the conflict in the Middle East has buoyed market sentiment, despite some mixed economic data and sector-specific challenges. The upcoming speech by President Trump is anticipated to provide further clarity on U.S. foreign policy and its implications for the markets.