The United States and Iran have reached a tentative agreement to end a war that has sent energy prices soaring and caused volatility across financial markets. Going forward, investors may continue to invest in technology, one of the most reliable parts of the stock market. Since the two countries agreed to a ceasefire on April 8, the market’s best performers have undoubtedly been tech companies, especially chipmakers. The iShares Semiconductor ETF (SOXX) has soared 71% since then, while Micron Technology, Marvell and Arm Holdings have more than doubled since then. The S&P 500 tech sector also soared 34% during the period, pushing the overall market to record levels, while the Nasdaq Composite Index soared 17% during the period. JPMorgan’s market intelligence team took a tactical bullish stance on stocks, saying a deal to end the war between the US and Iran could “trigger broad risk-on impulses across stocks.” “Having said that, we continue to favor technology and remain tactical long on the Treasury sector, as historical patterns suggest that the ‘all the rally’ may fade into focused leadership after the initial impulse,” they added. It is also possible that no deal can be reached between now and Friday, when the agreement is scheduled to be signed. This could cause the technology industry to lose momentum. Vice President J.D. Vance told CNBC’s “Squawk Box” on Monday that “many” details still need to be worked out. However, he noted that the United States holds “all the cards.” JP Morgan’s market intelligence team said: “We want to return to the tech and cyclical barbell, but remain nimble in rate-sensitive trades and the resumption of Hormuz trading. We’ll stick with the global AI theme for a long time, with a heavy emphasis on the US vs. Asia.”
