The stock market is sending two messages at the same time, and that is exactly why it looks stronger — and stranger — than it probably should.
One message is coming from energy. Oil has forced its way back to the center of the market narrative amid the Iran war shock, and energy stocks have responded the way investors would expect in that kind of tape: by leading. Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX) both have surged about 32% year-to-date, while Marathon Petroleum Corp (NYSE:MPC) jumped 45%.
That is the straightforward part of the story. When supply risk rises and crude jumps, investors reach for the companies most directly positioned to benefit.
Nvidia, AI Brigade Defy The Oil Shock
The other message is coming from technology, and it should be pulling in the opposite direction. Higher oil usually feeds inflation anxiety, pushes out rate-cut expectations, and makes investors less willing to pay up for long-duration growth.
But that is not what March has looked like.
Tech stocks have held up admirably in the face of adversity. The Nasdaq-100 index has edged up 1.33% so far this month. AI bellwether Nvidia Corp (NASDAQ:NVDA) is up almost 3% this month.
‘Under-The-Radar Support’
LPL Financial underscored this peculiar market pattern in a recent piece of market commentary.
“Energy stocks led the S&P 500 again this week, while technology …
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