Review of US stock market movements on March 8th

U.S.-Iran Conflict Escalates, Powell's Hawkish Remarks, Poor PPI Data: Market Hit with a Triple Whammy, S&P Nears Capitulation! Memory Sector Rises Against the Trend, Can It Continue?

Today's Events
1. The U.S. and Iran began attacking each other's energy facilities, causing crude oil prices to rise to high levels again;
2. The Federal Reserve's interest rate meeting kept rates unchanged, with Powell's remarks leaning hawkish. He stated that the impact of the current Middle East situation is still uncertain, rising energy prices will push up inflation, and there will be no rate cuts before inflation improves;
3. February core PPI hit a one-year high, with inflation exceeding expectations across the board.

Current Wall Street Consensus Expectations
1. The Strait of Hormuz reopens in April, oil prices fall back, and the impact on the economy will not be amplified. If high oil prices persist beyond May, the market this year will need to be repriced, with a chance of revisiting the 2022 bear market.
2. Inflation rebounds, with only one rate cut expected for the full year, and the probability is only 50%.

S&P
Opened lower and continued lower. The rebound in the previous two days was ineffective. If it falls below 6600, more funds are expected to capitulate, and the market will face greater selling pressure!

Now:
Watch more, act less.
If the Strait of Hormuz resumes navigation, buying can be increased significantly on that day.

Memory Sector
MU$Micron Tech(MU.US) 
Down 4% after hours.
Revenue, profit, EPS, and next-quarter guidance all significantly exceeded expectations; capital expenditures for this fiscal year and the next were substantially raised.

The earnings report was strong, consistent with a supercycle performance. The after-hours drop is not important. Track the follow-up:
1. Rises against the trend, strong performance.
2. Profit-taking occurs. Normal fluctuations if it doesn't break below 410; weakness if it breaks below 410.