Wall Street Rebounds as Investor Sentiment Improves Amid Geopolitical Developments
Kuala Lumpur, 17 April 2026 – The US equity market has continued to demonstrate resilience, rebounding strongly to near record levels despite ongoing geopolitical developments surrounding the Iran conflict, according to Rakuten Trade Sdn Bhd.
On 14 April 2026, Wall Street closed higher, with the S&P 500 rising approximately 1.2% to 6,967, just shy of its all-time high, while the Nasdaq Composite surged around 2.0% to 23,639 and the Dow Jones Industrial Average gained about 0.7% to 48,535.
The rally was supported by optimism that negotiations between the United States and Iran may resume, alongside increasing focus on the ongoing earnings season. The rebound highlights underlying investor confidence in the US market, even as volatility persists.
Vincent Lau, Head of Equity Sales at Rakuten Trade, said the US market’s ability to recover reflects its underlying strengths and broad sector diversification, allowing investors to navigate shifting conditions more effectively.
“The US market has shown resilience and rebounded despite ongoing geopolitical uncertainties. Its diversity across sectors provides multiple opportunities for investors, even as certain areas face pressure.
While some software names have seen earlier weakness, this may present opportunities to accumulate quality stocks or gain exposure through Exchange-Traded Fund (ETFs) at more attractive valuations.
At the same time, movements in oil prices have renewed investor attention on energy stocks, including names like Occidental Petroleum Corp (OXY), while defense-related stocks are also seeing increased interest amid current developments.
Overall, we remain constructive on the US market, with expectations that the second half of the year could see improved performance as conditions stabilize,” he said.
Rakuten Trade has observed increased trading interest in US ETFs and selected sectoral opportunities in recent sessions, with trading value in ETFs as well as technology, defense and energy stocks rising averagely 88% over the past week, reflecting a shift in investor positioning amid the market rebound.
The recent recovery has been supported in part by a rebound in software stocks after several sessions of decline, alongside heightened focus on corporate earnings, particularly within technology and AI-related segments which continue to play a significant role in the broader market.
Meanwhile, oil prices have remained volatile amid developments in the Strait of Hormuz. While earlier supply concerns led to price spikes, recent movements have been more mixed amid expectations of potential de-escalation. Despite this, energy-related counters continue to see interest, while elevated prices raised broader inflation considerations.
Lau also noted that the US market’s position as a net oil exporter provides a relative buffer compared to some regional markets, which have experienced greater strain amid recent volatility.
Looking ahead, developments in geopolitical negotiations and the ongoing earnings season are expected to remain key drivers of market direction. Potential catalysts, including major listings within the space and aerospace ecosystem, could also drive interest in related sectors.
In the current environment, investors are encouraged to adopt a selective approach, focusing on sectors and themes with stronger fundamentals or supportive trends while remaining mindful of near-term volatility driven by geopolitical and macroeconomic factors.
