Stocks Plunged In March, But Hope Emerges In The U.S.-Iran War

Stocks recorded their largest monthly loss since September 2022 after oil prices surged 53% driven by the Iran war, sparking a broad risk-off move. Energy outperformed while defensive and growth sectors underperformed, and large-cap tech names (Nvidia, Meta, Microsoft) have re-rated to discounted P/E multiples. The geopolitical-driven commodity shock poses market-wide implications for sector allocation and near-term earnings visibility.

Analysis

Stocks recorded their largest monthly loss since September 2022 after oil prices surged 53% driven by the Iran war, sparking a broad risk-off move. Energy outperformed while defensive and growth sectors underperformed, and large-cap tech names (Nvidia, Meta, Microsoft) have re-rated to discounted P/E multiples. The geopolitical-driven commodity shock poses market-wide implications for sector allocation and near-term earnings visibility.