1203 ET - Auto sector stocks may not be out of the woods yet, even if the market is pricing in more optimism. In a CIBC report, analyst Ty Collin says the war in Iran remains "the most important macro factor for now," and that the market may be too quick to price in optimistic outcomes. The analyst notes supplier stocks are only about 4% lower since the conflict began, after recovering from a roughly 13% declines, but says that "the risks increase with time." While 1Q should be positive, the real issue is the growing macro overhang of potential input-cost inflation, pressure on consumer demand and reduced visibility as the conflict drags on. "Resolutions to the Iran War and USMCA negotiations are key catalysts for the sector," he adds. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

April 23, 2026 12:04 ET (16:04 GMT)

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