To The Moon

U.S. stocks rebounded Wednesday as investors shrugged off geopolitical tensions in the Middle East and focused instead on strong economic data.

The $S&P 500(.SPX)$ rose 0.8%, while the $NASDAQ(.IXIC)$ gained 1.3%. The Dow Jones Industrial Average climbed 238 points, or 0.5%.

Top Stock: $Moderna, Inc.(MRNA)$ (+16%). Biggest Decliner: Brown-Forman (-6.7%)

Best Sector: Consumer Discretionary (+2.2%). Worst Sector: Energy (-0.7%)

Despite the recent escalation between the U.S., Israel, and Iran, the S&P 500 is now down just 0.1% compared with last Friday’s close, before the military strikes began.

At one point during Wednesday’s session, the benchmark index briefly turned positive for the week.

Market Resilience Despite Geopolitical Risks

Analysts say the market’s reaction highlights investor resilience.

Strong ISM Services Data Lifts Stocks

Stocks gained momentum after the Institute for Supply Management reported stronger-than-expected services activity. The Services Purchasing Managers’ Index (PMI) rose to 56.1, beating economist expectations of 53.9 and improving from 53.8 in January.

According to ISM survey chair Steve Miller, businesses remain confident despite uncertainty surrounding tariffs following a recent Supreme Court of the United States decision overturning parts of Donald Trump’s tariff policies.

Companies reported that supply chains remain stable, suggesting many firms have adapted to changing tariff policies.

Risk Assets Rally

Investors quickly rotated back into higher-risk assets following the positive data.

Key market moves included:

• Invesco S&P 500 High Beta ETF rose 1.8%

• iShares Expanded Tech‑Software Sector ETF gained 1.8% $iShares Expanded Tech-Software Sector ETF(IGV)$

$IGV

• Small-cap stocks rallied

  $Roundhill Russell 2000 0DTE Covered Call Strategy ETF(RDTE)$

$RDTE

• Consumer discretionary shares jumped 2.2%, the best-performing sector

Meanwhile, WTI crude oil pulled back from earlier gains and finished nearly flat at $74.66 per barrel, easing concerns about energy supply disruptions.

Strait of Hormuz

Tariff Refunds Could Return $175 Billion to Importers

Another major development came from the United States Court of International Trade, which could trigger massive tariff refunds.

Following the Supreme Court’s ruling against tariffs imposed by Donald Trump, Judge Richard Eaton opened the door for companies to receive refunds for tariffs collected under the International Emergency Economic Powers Act (IEEPA).

According to estimates from the Penn Wharton Budget Model, about $175 billion in tariffs could potentially be refunded to businesses.

Thousands of companies, from retailers like $Costco(COST)$ to logistics giant FedEx, may qualify for repayments.

The ruling could resolve more than 2,000 pending lawsuits and may result in refunds being issued within months if the government does not delay implementation.

Earnings to Watch

Investors will turn their attention to several major earnings reports tomorrow, including:

• Costco Wholesale

• Marvell Technology

• Gap

• BJ's Wholesale Club

• Burlington Stores

• Ciena

• Guidewire Software

• Samsara

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

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