The rebound in US stocks has been really quite strong, and new 52-week highs are not far off. On Tuesday, all three major indices rose, with the S&P 500 nearing its record high; it’s only less than 1% away from the 52-week high, essentially recovering all of the initial losses from the early stage of the Iran situation.

What’s most interesting is that technology stocks once again took the lead this time. Nvidia has gained more than 18% over the past 10 trading days, Oracle surged for two straight days, and Palantir also strengthened along with them. The performance of these AI-related stocks directly lifted the Nasdaq, up 1.96%. It looks like market confidence in demand for computing power and chips has returned. Tech giants like Meta, Amazon, Google, and Microsoft keep pouring money into expanding AI infrastructure. Nvidia management recently disclosed that it has already secured more than $1 trillion in GPU order-demand—this is the real underlying logic supporting stock prices.

Another key variable driving this rebound is the sharp drop in oil prices. WTI crude futures fell 7.87%, dropping to $91.28 per barrel, and Brent crude also declined by 4.6%. Once oil prices come down, worries about inflation and the Federal Reserve’s policy clearly ease. Coupled with the fact that the US March producer price index came in below expectations, this provides a more favorable macro backdrop for the stock market. White House officials confirmed that a second round of US-Iran negotiations is underway, and the market has already begun to bet that the situation will gradually ease rather than continue to escalate. This shift in expectations is especially beneficial for risk assets.

Wall Street analysts are also relatively optimistic. Morgan Stanley’s chief strategist said outright that the market bottom has already appeared. The ratio of the S&P 500 to gold prices has rebounded quickly from the low point on the day of the Iran war. This is seen as a leading indicator that the market environment may improve over the next six months. Baird’s strategist believes that even though the probability of further escalation of the Iran situation is not high, the market has already priced in these risks to a significant extent. The fact that stocks are still near 52-week highs indicates that overall risk tolerance is stronger than expected.

From the perspective of individual stocks, earnings-related factors are still causing differentiation. Wells Fargo fell by more than 5% due to results that missed expectations. JPMorgan Chase, even with good earnings, only faced modest pressure after lowering its net interest income guidance. However, some areas with structural growth logic are starting to attract attention—for example, retirement real estate REITs. It looks like the market is not only trading short term, but also re-positioning for assets that can benefit in the long run from demographic and technology trends.