Market Overview U.S. stock markets closed higher for a second consecutive session on March 18, with the S&P 500 index rising 0.25%. Among the top 20 stocks by trading volume on U.S. exchanges, Amazon projected that its AWS division could generate $600 billion in sales over the next decade. Chinese ADRs showed a mixed performance; Tencent Music Entertainment plunged 24.68%, while Atour Lifestyle Holdings gained 5.98%. Oil prices surpassed $103 per barrel as U.S. allies showed reluctance to escort tankers in the Strait of Hormuz. Commodity Summary: Crude oil prices recovered, gold traded within a narrow range, and copper prices on the London Metal Exchange declined. European equity markets advanced for a second day, led by gains in the energy sector.

Macro Developments Former President Donald Trump suggested the U.S. should consider withdrawing from NATO. Facing a cool response from allies to join a maritime protection force in the Strait of Hormuz, Trump stated that the U.S. no longer needs such assistance. Trump criticized NATO for its lack of support, while a senior U.S. counterterrorism official accused Israel of misleading Washington. A top U.S. counterterrorism official resigned, blaming Israel for pushing the U.S. toward conflict with Iran and questioning the purpose of the engagement. The U.S. State Department has directed all overseas embassies to conduct immediate security reviews. U.S. intelligence agencies assessed that the Iranian regime remains stable. If hostilities with Iran continue, Trump's proposal for a naval escort mission may prove unfeasible. Iran's president confirmed the death of Ali Larijani and delivered a eulogy. Informed sources indicated that Iran has designated multiple successors for key government positions. Iran's parliamentary speaker stated that the Strait of Hormuz will not return to its pre-war condition. The Islamic Revolutionary Guard Corps confirmed the death of the commander of the Basij militia. Iran intensified attacks on Saudi Arabia, launching nearly 100 drones at the oil-producing nation on Monday. The Israeli military threatened to target Iran's new supreme leader. Israel's prime minister released a video for the third consecutive day to prove he is alive. Israel claimed it had eliminated Iran's top security official, Ali Larijani. Iraq is negotiating with Iran to reopen a critical oil transit route. The European Union is reportedly preparing to restart the approval process for a U.S.-EU trade agreement, potentially easing transatlantic tensions. Disruptions in the Strait of Hormuz are affecting Asia, with Thailand turning to Russian oil supplies. Rising economic costs from the U.S.-Iran conflict have prompted Germany to consider capping fuel price increases. Germany aims to expand its AI infrastructure, with plans for large-scale data center development. Ukrainian President Zelenskyy announced that a team of experts has arrived in Gulf states to counter Iranian drone threats.

Corporate News Elon Musk is engaged in settlement talks with the U.S. Securities and Exchange Commission regarding litigation tied to the acquisition of Twitter. Lululemon issued weak earnings guidance, citing pressure from a proxy battle and tariffs. Nvidia CEO Jensen Huang discussed the company's multi-trillion dollar revenue potential, the reopening of the Chinese market, and the strength of Chinese automakers. OpenAI is preparing for an IPO by year-end and has instructed employees to position ChatGPT as a productivity tool. An Amazon executive predicted that AI will help drive AWS revenue to $600 billion. Japanese refiner Idemitsu Kosan is expanding fully into the LNG business. Unilever is reportedly considering a potential spin-off of its food division. Amazon introduced one-hour and three-hour delivery options in the U.S., with associated fees. CoreWeave partnered with BCE to build an AI data center in Canada. Apple acquired MotionVFX, as its services revenue now exceeds 26% of total sales. Nvidia is increasing its focus on copper interconnect strategies, drawing attention to optical communication stocks. Uber is collaborating with Nvidia to expand its autonomous taxi fleet globally. After becoming the anchor tenant in Boston's newest skyscraper, JPMorgan plans to add hundreds of jobs in the city. SK Group's chairman warned that the memory chip shortage could persist for 4-5 years, with wafer supply lagging by 20%.

Commentary Escalating conflict in the Middle East is complicating policy decisions, presenting a new challenge for the Federal Reserve's dual mandate. A Goldman Sachs partner noted the absence of panic selling in U.S. stocks and recommended simplifying portfolios while increasing cash holdings. Analysts explored reasons behind Nebius's sharp decline on Tuesday and offered investment advice. U.S. Treasury markets advanced, with strong demand for a 20-year bond auction. Apollo's chief economist expects the Federal Reserve to keep interest rates unchanged on Wednesday. Canada's energy regulator anticipates a surge in electricity generation, with wind power as the primary new source. Bank of America raised its debt forecast for hyperscale computing firms by 25% to $175 billion. Deutsche Bank, UBS, and Société Générale stated that their exposure to private credit is of high quality and does not pose systemic risks. The Iran conflict has caused a naphtha shortage, forcing several Japanese petrochemical firms to cut production, potentially affecting numerous downstream industries. UBS's CFO stated that no systemic stress has been observed in the private credit sector.