In sharp contrast to the dismal performance of Asian-Pacific and European stock markets, US stocks staged a thrilling V-shaped reversal on March 9 (Monday), with all three major indexes closing higher, and tech stocks becoming the main driving force of the rebound.

In the morning session, affected by the spread of global market panic and the impact of the surge in oil prices, the three major US stock indexes opened sharply lower collectively. The Dow Jones Industrial Average once fell by more than 1.5%, and the Nasdaq Composite Index fell by nearly 2%, with a strong bearish sentiment in the market.

However, with the release of Trump’s remarks that the Middle East war is drawing to an end, market sentiment reversed rapidly. Capital began to flow back into the stock market on a large scale, especially the tech growth sector that had been sold off earlier. The semiconductor sector became the vanguard of the rebound, with the Philadelphia Semiconductor Index surging 3.93%. Nvidia closed up 2.72%, Broadcom rose sharply by 4.62%, and AMD rose 5.33%, with the stock prices of many tech giants hitting record highs.

By the close of trading, the Dow Jones Industrial Average rose 239.25 points, or 0.50%, to 47740.80 points; the Nasdaq Composite Index rose 308.27 points, or 1.38%, to 22695.95 points, basically recovering all the lost ground since the Iran conflict; the S&P 500 Index rose 55.97 points, or 0.83%, to 6795.99 points.

Market analysts said that the strong reversal of US stocks is due to the temporary easing of geopolitical risks on the one hand, and reflects the market’s confidence in the resilience of the US economy and corporate profits on the other hand. Although inflationary pressure has risen due to the surge in oil prices, strong employment data and moderate inflation expectations still support investors’ optimistic expectations that the Federal Reserve will maintain an accommodative policy cycle.