The S&P 500 (^GSPC +0.62%) rose 0.62% to 6,824.66, the Nasdaq Composite (^IXIC +0.83%) climbed 0.83% to 22,822.42, and the Dow Jones Industrial Average (^DJI +0.58%) added 0.58% to 48,185.80 as stocks built on yesterday’s ceasefire-driven gains.
Market movers
Amazon (AMZN +5.43%) gained after CEO Andy Jassy’s shareholder letter outlined how the company would profit from its artificial intelligence (AI) investments, particularly its in-house chip business. Intel (INTC +4.70%) continued its advance.
Spirit maker Brown‑Forman (BFB +12.89%) rallied on reported takeover interest. It wasn’t the only alcohol stock to gain; Constellation Brands (STZ +8.53%) surged on an earnings beat.
In contrast, software stocks, including ServiceNow (NOW 7.86%) and Zscaler (ZS 11.33%) slid on renewed AI-replacement fears. Meanwhile, small-cap biotech Invivyd (IVVD +31.85%) jumped on encouraging news from its COVID‑19 prevention trial.
What this means for investors
Questions about the fragile U.S.-Iran ceasefire pressured markets in early trading, with WTI Crude moving back above $100 a barrel. However, news that Israel would enter talks with Lebanon reassured investors that the truce could hold and the Strait of Hormuz may reopen soon.
February’s Personal Consumption Expenditures (PCE) report today showed that inflation remained sticky, even before the conflict. All eyes will be on tomorrow’s March Consumer Price Index data, as it will provide a clearer indication of how much high energy costs are impacting the economy.
Meanwhile, analysts at JPMorgan Chase (JPM +0.77%) predict stocks, particularly tech stocks, could benefit from an April rebound as hedge funds rebuild their equity exposures. That said, any near-term market movements will depend a lot on peace negotiations and falling energy prices.
JPMorgan Chase is an advertising partner of Motley Fool Money. Emma Newbery has positions in Amazon, Nvidia, and Zscaler. The Motley Fool has positions in and recommends Amazon, Intel, JPMorgan Chase, Nvidia, ServiceNow, and Zscaler. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.