US equity indexes closed modestly higher on Monday despite resilient oil prices, as investors waited for clarity on the prospects of a resolution to the war in the Middle East.
Trump on Sunday issued a fresh round of threats to attack Iran's power plants and civilian infrastructure starting Tuesday, if Tehran failed to fully reopen the Strait of Hormuz.
However, Iran rejected the proposal, saying that it would not agree to the proposal until damage from the war is compensated. the odds for reaching a partial deal before the Tuesday deadline seem slim.
According to Morningstar, financials were the most overvalued in Q1, but has become cheaper. Similarly, overvalued consumer cyclicals were the second worst hit and are now attractively valued.
US equity funds witnessed substantial inflows in the week to 1 April, data from LSEG Lipper showed. Still they chose to shun small-cap, mid-cap and sectoral funds – a sign of shaky confidence.
Goldman Sachs expected the Fed to react in a more hawkish way than anticipated. It added economic growth concerns would likely come to the fore in the second half of 2026.
The S&P 500 breached its downward trendline, signalling more gains down the line, with potential resistance around 200 SMA. But another leg lower cannot be ruled out if the US bombs Iranian power plants.
Asset recap
As of market close on 6 April, among EBC major products, Micron Technology shares led gains after a KeyBanc analyst reiterated his price target and rating, citing continued demand for memory.
Tesla shares hit the lowest since September as sales slump continues and SpaceX IPO nears. JPMorgan keeps Underweight with a $145 target, which implies roughly 60% downside.
South Korea's four largest financial groups are expected to post record Q1 earnings, as higher lending rates boosted interest income and a rally in the domestic stocks lifted fee revenue from brokerage and fund sales.
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