March 24, 2026
S&P futures down 0.3% Tuesday morning following Monday’s broad-based rally, where all 11 sectors finished higher and over 80% of constituents advanced. Leadership came from small caps, travel, homebuilders, metals, and machinery, while memory lagged. Asian markets were higher (Hong Kong and South Korea +2.5%+), while Europe is modestly lower (~-0.5%). Treasuries are weaker (yields +3–4 bp), the dollar is up 0.4%, gold and silver are slightly higher, Bitcoin is flat, and crude is rebounding (WTI +3.3%, Brent +2.8%).
Geopolitics remain the key driver. Iran continues to deny ceasefire negotiations, though persistent backchannel headlines suggest some progress. Risks remain elevated with the Strait of Hormuz effectively closed, reports of Iranian mines, continued missile exchanges, and potential escalation involving Saudi Arabia and the UAE. Outside geopolitics, private credit concerns resurfaced with Apollo maintaining withdrawal limits despite elevated redemption requests, while Eurozone flash PMIs pointed to growing stagflation risks.
Today’s focus is on flash PMIs and productivity/unit labor cost data, alongside a $69B 2-year Treasury auction and Fed Governor Barr speaking. The remainder of the week includes import/export prices, jobless claims, and Michigan sentiment.
Company highlights:
- Apollo Global Management (APO) said investors requested withdrawals of ~11% (~$1.6B) from its flagship private credit fund but it will maintain a 5% cap.
- FS KKR Capital (FSK) downgraded to junk at Moody’s.
- Jefferies (JEF) higher on reports of potential takeover interest from Japan’s SMFG.
- Gilead Sciences (GILD) confirmed acquisition of Ouro Medicines (~$1.7B upfront + milestones).
- Estée Lauder (EL) confirmed talks to acquire Spain’s Puig.
- Alibaba (BABA) launched a new AI inference chip.
- SK Hynix (000660.KS) considering a ~$10B U.S. listing.
- Netgear (NTGR) rallied on reports the FCC will ban imports of new foreign-made consumer routers.
U.S. equities rebounded Monday with the Dow +1.38%, S&P 500 +1.15%, Nasdaq +1.38%, and Russell 2000 +2.29%, though indices finished off intraday highs. The rally was driven by improving sentiment around the Iran conflict, following comments from President Trump pointing to productive U.S.-Iran discussions, reinforcing hopes for a potential off-ramp after last week’s sharp risk-off move.
The move was accompanied by a sharp unwind in energy markets, with WTI -10.4% (largest decline since March 2020) and Brent -12.2%, helping ease inflation concerns and support risk assets. Treasuries firmed (2Y -5 bp) after earlier volatility that briefly pushed yields toward 4%, while the dollar weakened (-0.6%). Gold (-3.7%) and silver (-0.4%) declined, reflecting a broader unwind of defensive positioning.
Despite the rebound, geopolitical uncertainty remains elevated, with Iran denying formal negotiations and reiterating that hostilities will continue until sanctions are lifted. However, persistent backchannel dialogue headlines continue to underpin risk sentiment.
On the macro front, January construction spending fell 0.3% m/m (vs +0.3% expected), adding to mixed growth signals. Fed commentary highlighted a growing divide on inflation risks, with some officials concerned about energy-driven inflation expectations, while others downplayed broader spillover effects. The week ahead is relatively light, with focus on PMIs, labor costs, Michigan sentiment, and heavy Treasury supply.
Sector Highlights
Sector performance reflected a pro-cyclical rebound tied to lower oil prices and easing rate pressure. Consumer Discretionary (+2.46%) led, followed by Materials (+1.49%), Technology (+1.46%), and Industrials (+1.16%), supported by strength in autos, travel, semis, and machinery.
More defensive and rate-sensitive sectors lagged on a relative basis. Healthcare (+0.03%) and Consumer Staples (+0.37%) saw minimal gains, while Real Estate (+0.62%) and Communication Services (+0.69%) underperformed the broader tape. Financials (+0.86%) participated but trailed cyclicals. Notably, Energy (+1.14%) lagged despite gains, reflecting the sharp decline in crude prices and reduced inflation pressure. Overall, the session marked a rotation back toward growth and cyclical exposures following last week’s defensive and inflation-driven selloff.
Information Technology
- Apple (AAPL) announced WWDC (June 8–12) with a focus on AI features.
- Synopsys (SNPS) rose on reports Elliott built a multibillion-dollar stake, pushing for higher-margin software/services mix.
- Mobileye (MBLY) secured a major U.S. automaker deal for its driver monitoring system (production from 2027).
- MongoDB (MDB) upgraded on AI-driven growth potential.
Communication Services
- DraftKings (DKNG) and Flutter Entertainment (FLUT) gained on reports of legislation targeting prediction markets, potentially benefiting traditional betting platforms.
Healthcare
- Gilead Sciences (GILD) reportedly nearing a $2B acquisition of Ouro Medicines.
- Apogee Therapeutics (APGE) surged on positive eczema drug trial data.
- Insmed (INSM) rose on strong Phase 3 data and plans for NDA filing.
- Stryker (SYK) said a cybersecurity incident had no material impact.
Industrials
- Delta Air Lines (DAL) gained alongside airlines on falling oil prices and improved geopolitical sentiment.
- AeroVironment (AVAV) upgraded on valuation following recent selloff.
Energy
- Valvoline (VVV) upgraded, with analysts noting energy-related inflation concerns largely priced in.
Real Estate / Financials
- Two Harbors Investment (TWO) rose after deeming a new cash bid superior to a prior merger agreement.
Consumer Discretionary
- Estée Lauder (EL) fell on reports of a potential merger with Puig.
Eco Data Releases | Tuesday March 24th, 2026
S&P 500 Constituent Earnings Announcements | Tuesday March 24th, 2026
No constituents report today
Data sourced from FactSet Research Systems Inc.
