Market Summary: What Happened Yesterday and What Awaits us Today (March 10):

US markets rebound after Trump's remarks: Oil retreats from highs of $119 and Wall Street erases sharp losses amid hopes of a trade war easing.

US equities closed higher on Monday after recovering from steep intraday losses, as easing fears around the Middle East conflict and a sharp drop in oil prices helped stabilize investor sentiment.

The Dow Jones Industrial Average gained about 240 points, or 0.5%, after falling nearly 900 points earlier in the session. The S&P 500 rose 0.8%, while the tech-heavy Nasdaq Composite climbed 1.4% as major technology stocks rebounded.

Markets were initially shaken by extreme volatility in energy prices following last week’s surge in crude oil, which briefly raised fears of a new inflation shock. Oil had rallied sharply after tanker traffic through the Strait of Hormuz—a critical route for roughly 20% of global oil trade—was disrupted during the conflict involving Iran.

Overnight, West Texas Intermediate (WTI) crude briefly surged above $119 per barrel before reversing course. Prices fell sharply after G7 finance ministers signaled they could release strategic petroleum reserves to offset potential supply disruptions.

Investor sentiment improved further after comments from US President Donald Trump, who said the conflict in the region was “very close to its end” and confirmed that ships had begun moving again through the Strait of Hormuz. Trump also suggested the United States may take measures to ensure safe passage through the waterway.

Following those developments, WTI crude dropped about 6% to around $85 per barrel by the end of Monday’s session, easing fears of sustained energy-driven inflation.

Analysts say the retreat in oil helped calm markets that had been pricing in a potential supply shock. Economists at Bank of America noted that oil prices roughly $15 above pre-war levels would not necessarily pose a major inflation risk, but warned that prices remaining above $100 per barrel for an extended period could create broader economic pressure.

Meanwhile, Chicago Federal Reserve President Austan Goolsbee cautioned that a combination of rising oil prices and weakening labor markets could raise the risk of stagflation, one of the most challenging scenarios for central banks.

Recent labor data showed the US unemployment rate rising to 4.4%, slightly above expectations of 4.3%, reinforcing concerns that economic momentum may be slowing.

In bond markets, the yield on the 10-year US Treasury fell to around 4.10%, down from 4.13% on Friday after briefly touching 4.21% earlier in the session. The US dollar index edged 0.1% lower to 98.86.

Commodity markets were mixed. Gold slipped 0.3% to about $5,140 per ounce, while silver gained 3% to around $86.80.

Cryptocurrencies also moved higher, with Bitcoin rising to roughly $69,200 after earlier dipping near $65,600.

Airline and cruise stocks rallied as falling oil prices improved fuel cost expectations. Shares of Delta Air Lines, United Airlines, and American Airlines posted solid gains, while cruise operators including Norwegian Cruise Line, Carnival, and Royal Caribbean also advanced.

Technology stocks helped drive the broader market recovery. Shares of SanDisk surged 12%, while Western Digital climbed about 7%.

Among notable individual movers, Hims & Hers Health jumped 44% after announcing an agreement with Novo Nordisk to distribute the Danish company’s weight-loss drugs through its digital platform. Live Nation Entertainment also gained about 6% after reaching a settlement with the US Department of Justice that allows it to retain ownership of Ticketmaster.

European markets closed mostly flat as investors remained cautious amid ongoing geopolitical risks. Germany’s DAX was little changed, while France’s CAC 40 and Britain’s FTSE 100 hovered near previous closing levels.

In Asia, sentiment was weaker. Japan’s Nikkei 225 and Hong Kong’s Hang Seng both declined as investors weighed the potential economic impact of higher energy prices. China’s Shanghai Composite traded largely sideways.

Market outlook

Looking ahead, global markets are likely to remain highly sensitive to developments in the Middle East, particularly the stability of shipping through the Strait of Hormuz.

Traders will also monitor incoming economic data and signals from the Federal Reserve for clues about the trajectory of inflation and interest rates.

Analysts say that oil stabilizing below $100 per barrel could help support equities and reduce inflation concerns. However, any renewed disruption to energy supplies or escalation in the conflict could quickly reintroduce volatility across global financial markets.