As the Middle East situation enters a brief military easing, international crude oil prices have seen a sharp one-day plunge, and the three major US stock indexes show clear divergence along with sector rotation.

The pullback in crude oil has eased some inflation pressure; US Treasury yields have fallen in tandem, and capital has returned from defensive and energy sectors to high-beta consumer and technology sectors.

On Monday, the core storyline in the US stock market was “a crude-oil rout triggered by geopolitical risk cooling,” which then reshuffled funds—covering short positions in airlines/consumer stocks, taking profits in energy, and waiting for technology giants’ earnings reports.

The Federal Reserve is set to release its latest interest-rate decision on Wednesday. The market broadly expects rates to remain unchanged, but the macro inflation path will still be closely constrained by subsequent geopolitical developments.

‍#USD1持币生息最高8%