Stocks Continue Rebound As Investors Look Past Conflict

0:00Welcome to Risk Reversals Market Matrix, your AI-generated podcast, curated by Guy Adami and Dan Nathan, breaking down the day's most impactful stock market and business headlines. I'm your host, Brunson, and all of today's market data is provided by FactZep. It's Tuesday, March 17th, and these are your top stories. This closed higher, Tuesday with the S&P 500 of 0.25%, the NASDAQ gaining 0.5%. And the Dow adding about 50 points, as investors balance geopolitical risks with continued dip buying momentum. That came as oil prices jumped more than 2%, with Brent crude rising above $103 and US oil at $96 amid growing concerns over disruptions in the Strait of Hormuz, a key artery for global supply. With the surge in energy prices, consumer discretionary stocks climbed about 1%, led by travel names and airlines on strong outlooks, while energy was the top performing sector, up

1:02more than 1%. With tanker traffic still constrained and uncertainty around US lead protection efforts, markets are navigating a delicate mix of rising costs and resilient demand. Despite rising oil prices, the financial times writes that US airlines are seeing a strong rebound in demand, especially from higher end travelers, even as fuel costs tied to the Iran conflict are expected to pressure profits. Executives say bookings are hitting record levels, with premium customers largely unfazed by higher prices and continuing to spend. The strength is partly driven by a catch-up in travel after a weaker period last year, particularly among wealthier consumers. Still, some analysts warn that elevated fuel costs and ongoing disruptions could weigh more heavily on the industry in the months ahead. Also in the FT, geopolitical tensions have investors moving into cash at the fastest pace since the pandemic, signaling a sharp shift in sentiment.

2:02Cash allocations jumped to 4.3% in March from 3.4% in February, reversing the bullish positioning seen earlier this year. The shift comes as stocks and bonds have both declined amid concerns that rising oil prices, a potential inflation shock and weakness in private credit, could weigh on global growth. As a result, expectations for economic expansion have dropped sharply, while inflation concerns have surged, leaving investors more defensive and cautious. This growing caution is feeding directly into the Fed's decision making. The central bank is expected to hold rates steady this week, as it faces a more complicated backdrop of geopolitical tension, sticky inflation, and uneven economic data. This has already pushed out expectations for any rate cuts, with the first move now likely not coming until the fall, if at all this year. Recent shocks, particularly in the Middle East, risk pushing energy prices higher and further delaying progress toward the Fed's 2% inflation goal.

3:03That leaves policymakers in a tougher spot, with a tension turning to chair Jerome Powell's outlook as the Fed leans into a cautious, wait and see approach. Now to the latest AI headlines. Bloomberg reports the Pentagon is moving to replace Anthropics AI tools, after the Trump administration labeled the company a supply chain risk, following a dispute over military use safeguards. Defense officials are already working to transition to alternative large language models, from providers like OpenAI, XAI, and Google, though replacing Anthropic systems could take weeks. The decision puts a $200 million contract at risk, and reflects a broader push to accelerate AI adoption across the military, while reducing reliance on a single vendor. Despite Anthropics lawsuit challenging the designation, Pentagon officials indicate there is little chance of restoring the partnership, and are pressing ahead with new AI integrations. The Wall Street Journal reports that OpenAI is preparing a major strategy shift to refocus on coding and enterprise users, moving away from its previous Do Everything approach

4:08that stretched resources and blurred priorities. The change comes as competition intensifies with Anthropic, whose focused push into coding and business tools has gained strong traction and challenged OpenAI's lead. Leadership, including Sam Altman and Fiji Simo, is now prioritizing productivity and plans to scale back less critical projects while better aligning research and product teams. With both companies' eyeing potential IPOs, the shift underscores rising pressure on OpenAI to regain momentum in high-value enterprise and developer markets. According to a report from the Wall Street Journal, electric vehicle sales in the US struggled in 2025 due to weaker demand and the loss of tax incentives, but fast-charging infrastructure saw major improvement with stations growing 87% and becoming faster and more powerful. Despite this progress, the US still lags behind China, where EVs can recharge in just minutes,

5:09largely because American vehicles aren't yet built to handle ultra-fast charging speeds. Companies like BYD are pushing the technology forward globally, while US networks are gradually upgrading to higher capacity chargers and improving the charging experience. Even with softer demand, charging companies remain optimistic as infrastructure expands and rising gas prices could help drive more EV adoption in the years ahead. CNBC reports MasterCard has agreed to acquire London-based stablecoin infrastructure, firm BVNK, for up to $1.8 billion, marking its biggest push yet into digital currencies. The deal will enable MasterCard to connect traditional payment rails with blockchain-based systems, positioning it at the center of growing stablecoin and tokenized payment adoption. BVNK's global platform, which supports transactions across major blockchains in more than 130 countries, gives MasterCard immediate scale in the space. The move comes amid rising momentum in crypto, fueled by a more favorable regulatory backdrop,

6:14and increasing competition from players like Coinbase. That's your risk-reversal market matrix. Be sure to follow us to get alerts on new episodes every day. All of the articles mentioned on today's podcast can be found in the show description. To get Guy Adami and Dan Nathan's market analysis, on these topics and more, listen to market call on risk-reversals YouTube page Monday through Thursday. Story Curation by RiskReversel, Scripts by PerplexityPro, Voice by 11 Labs. I'm Brunson. Thanks for listening.