[U.S. Stock Market Open] U.S. Secretary of Defense criticizes Iran heavily; oil prices still drop 8%, U.S. stocks remain weak (updating continuously)

U.S. Secretary of Defense Pete Hegseth said Tuesday will be the most intense day of military actions against Iran so far, with the highest number of fighter jets and bombers deployed to strike Iran. Chairman of the Joint Chiefs of Staff Mark Milley indicated that the U.S. is targeting Iranian gunboats.

Milley also stated that although Iranian forces are fighting, their combat effectiveness has not exceeded U.S. expectations. “I believe they are indeed fighting, and I respect that, but I don’t think their fighting strength is stronger than we anticipated.”

Brent crude oil fell 8%, trading at $91.14 per barrel.

Amazon is returning to the bond market. Bloomberg reported that the company is issuing up to 11 tranches of bonds, ranging from 2 to 50 years in maturity. The longest tranche — bonds maturing in 2076 — is initially priced at about 1.55 percentage points above U.S. Treasury yields.

U.S. stocks fluctuated, with the Dow down 100 points to 47,639, the S&P 500 down 0.2% to 6,783, and the Nasdaq up 0.1% to 22,716.

The U.S. dollar index fell 0.6%, to 98.62; U.S. long-term bond yields steadied at around 4.104%. Gold rebounded 1%, trading at $5,208 per ounce, supported by the lack of shock news from the U.S.-Iran situation.

In focus stocks, memory chip stocks continued to rebound. Micron (MU) rose 2%, back above $400; SanDisk (SNDK) increased 3%, to $606.81.

Oracle (ORCL) will announce earnings after market close.

Adam Hetts, head of the Global Multi-Asset Team at J.P. Morgan Asset Management, and portfolio manager Oliver Blackbourn said that disruptions in energy supply, rising oil and natural gas prices, and the lack of a clear cooling path are increasing inflation risks and causing greater market volatility. If the conflict persists, it could deepen economic pressures; however, U.S. political considerations might quickly frame the situation as a “victory” or rapid end, leaving asset outlooks uncertain.

Hong Kong stocks and ADR markets are continuously updated. See the next page for details.

▼Click image to enlarge

Market Trends:

【21:30】Memory stocks rebound; Micron up 2%; Dow up 101 points; Nasdaq up 0.3%; oil prices retreat 8%

【18:00】Dow futures up 101 points; Nasdaq futures up 0.3%; oil prices retreat 7%; Oracle (ORCL) earnings announced after close

【12:43】Dow futures down 183 points, at 47,586; S&P futures down 24 points, at 6,777; Nasdaq futures down 84 points or 0.3%, at 24,906

【12:09】Apple reduces reliance on China; India iPhone production now accounts for 25%

【11:00】AI + Defense | Anthropic files lawsuit demanding the U.S. Department of Defense rescind blacklisting

【10:31】Iran crisis | Trump says the war will end soon; gold prices stabilize and rebound

【08:28】Iran crisis | Dozens of oil tankers have reached the strait attempting to break through; Iran issues warnings again; Trump at press conference: Iran’s war will end soon but no timeline promised (updating)

【08:26】AI + NVIDIA | Reports suggest NVIDIA plans to launch open-source AI platform “NemoClaw”

【08:00】Apple | Reports indicate Apple delays smart home display device launch to wait for new Siri

$1 and below: U.S. stock market overview for March 9

Monday: Trump says war is nearly over; oil prices plunge; Dow surges 239 points

U.S. President Trump told foreign media that the war is nearly over, describing it as very complete. Iran has no navy, no communications, no air force; their missiles are left with only a few. Their drones have been destroyed everywhere, including their drone manufacturing plants.

Market close summary:

▼Click image to enlarge

+10

+9

“If you look, they have nothing left. In military terms, there’s nothing remaining,” Trump said. The U.S. can do a lot in the Strait of Hormuz and warned Iran that blocking the waterway will have consequences. “They’ve shot all they can shoot; they’d better not play any tricks, or it will be the end of their country… If they do anything bad, it will be Iran’s end. You will never hear that name again.” Trump also said the strait is currently open, claiming ships are entering, but he is still “considering taking control.”

That afternoon, the U.S. Department of Defense posted on X (formerly Twitter): “We are just getting started” and “Unforgiving.”

Following the comments, oil prices plummeted, and U.S. stocks rebounded. Brent crude fell 1.5% to $91.2; NYMEX crude dropped 3.4% to $88.

The Dow initially fell 886 points to a low of 46,615; the S&P dropped 1.5% to 6,636; Nasdaq fell 1.5% to 22,061.

The Dow closed up 239 points at 47,740; the S&P rose 0.8% to 6,795; Nasdaq gained 1.4% to 22,695.

Brent crude oil surged nearly 30%, approaching $120 per barrel at one point. The G7 finance ministers held an emergency meeting to discuss coordinated release of strategic petroleum reserves via the International Energy Agency (IEA) to address the spike in oil prices after the Gulf conflict.

French Finance Minister Roland Lescure said the G7 has not yet decided on releasing emergency oil reserves after the U.S.-Israel conflict.

After the Brussels G7 finance ministers’ online meeting, Lescure told reporters, “Our consensus is to use all necessary means to stabilize the market, including possibly releasing reserves.” He added that governments are closely monitoring the situation, and currently, there are no supply issues in Europe or the U.S.

Japanese Finance Minister Shunichi Suzuki said, “The IEA has called on countries to coordinate the release of oil reserves. Given the current situation, the G7 has agreed to continue closely monitoring energy markets and take necessary measures to support global energy supply, including releasing reserves.” He also mentioned that the OECD, World Bank, and IMF officials participated in the meeting. The G7 will soon hold a meeting of energy ministers to discuss further actions.

As of 2022 data, IEA member countries’ emergency oil reserves under OECD control are estimated at over 1.2 billion barrels, mostly crude oil. According to IEA regulations, all member countries must maintain emergency reserves equivalent to at least 90 days of net imports, ensuring at least three months of supply under normal consumption.

Market stabilizes; the U.S. dollar index falls 0.1% to 98.877; U.S. 10-year Treasury yields dip to 4.107%.

Gold prices narrowed their decline to 0.6%, at $5,138; silver rose 2.5%, to $86.63.

The U.S. military continues to demonstrate strength. According to BBC, U.S. B-52 and B-1 heavy bombers are stationed at Royal Air Force Fairford in the UK, with three B-52s landing in one day — the first time B-52s have appeared in the UK since the conflict began.

The B-52 is a typical “forward-deployed” aircraft, signaling large-scale air campaigns or imminent escalation. As a heavily armed “old yellow cow,” once enemy air defenses are weakened, B-52s can deliver large quantities of conventional ground-attack munitions to destroy infrastructure, industrial targets, or large ground forces.

Additionally, U.S. stock markets will open one hour earlier at 9:30 p.m. Hong Kong time due to daylight saving time.

J.P. Morgan notes that the oil market has entered a panic state, with prices soaring into triple digits, driven mainly by market sentiment, as the conflict itself has not seen any substantial changes. So far, supply disruptions are mainly due to cautious ships avoiding the Strait of Hormuz, causing trade blockages, rather than military blockades. However, it is expected that in the coming week and beyond, Middle Eastern oil supply could face up to 75% shutdown.

The bank said it will continue to monitor the situation closely. Currently, there are no significant damages to energy infrastructure, and Iran’s military power appears to be weakening. Solutions focusing on ensuring shipping through the Strait of Hormuz remain feasible. Given the fog of war, it reaffirms a neutral stance on oil and natural gas, with a basic expectation that energy prices will peak at current or slightly higher levels.

▼Click image to enlarge

Market updates continue on next page.