• US Treasury yields rose sharply, with the 20-year yield up 15.0 bp (3.11σ) to 4.97%, reflecting rising inflation expectations amid geopolitical concerns. • Gasoline and heating oil prices plummeted 11.76% and 10.87%, respectively, indicating a significant shift in energy markets as fears of disruption from the Iran conflict subsided. • The Russell 2000 surged by 2.29%, bolstered by strong performances from small-cap stocks, while the VIX increased 11.31%, suggesting heightened market volatility. **Recommendations** • Consider adding duration exposure in mid-to-long-term Treasuries as yields rise may stabilize after the geopolitical risk dissipates. • Rotate into energy stocks, particularly those leveraged to oil production, as recent price corrections present buying opportunities. • Monitor the upcoming Flash Manufacturing PMI reports on March 24 and adjustments in retail sales data for potential implications on policy expectations. In a volatile trading session, US markets reacted sharply to geopolitical developments, particularly President Trump's postponement of military strikes against Iran, which eased immediate worries over oil supply disruptions. Gold saw a sharp corrective decline, with comments circulating that the precious metal was overdue for a pullback, complicating its recent strength. Meanwhile, Bitcoin rebounded back above $71,000 with enthusiasm from bullish sentiment despite previous hesitations about its sustainability. Overall, risk assets enjoyed a rally, with the Russell 2000 particularly benefiting from small-cap momentum and robust earnings expectations in the tech sector. The economic calendar highlighted no recent impactful macro data to influence trading considerably, though investors noted construction spending figures and EU consumer confidence metrics were stable, offering little surprise. Flash Manufacturing PMIs from the UK and US upcoming on March 24 are anticipated to be pivotal for solidifying growth expectations; forecasts suggest modest improvements that could boost market sentiment further. US Treasury yields continued their upward trend, with the 20-year yield leading the charge with a rise of 15 bp to a notable 4.97%. This upward shift in yields, particularly seen across the curve, signals growing inflation expectations as traders reassess future monetary policy amidst reports of ongoing inflationary pressures. Notably, the performance of corporate bonds was mixed, with CCC yields rising by 16 bp—an unusual move that could reflect increased risk aversion in lower-quality fixed income. Indices demonstrated a palpable risk-on tone, bolstered by the strong performance of mega-cap tech stocks like Tesla (+3.50%) and Amazon (+2.32%), who gained traction on positive sentiment ahead of upcoming earnings. However, the VIX rose 11.31%, indicating growing investor unease about potential future volatility, exacerbated by geopolitical tensions. The drop in energy prices, particularly heating oil and gasoline, reinforces concerns regarding mixed signals in the market. Commodities had a rough session with heating oil and gasoline dropping 10.87% and 11.76%, respectively, amid the easing geopolitical climate. This resulted in unusual moves that warrant attention; both gasoline and heating oil's steep declines suggest either a mispricing based on speculative fears or an overreaction to prior highs amid rising tensions, thus presenting potential entry points for energy investors. Liquidity metrics have shown improvement, with the composite liquidity regime signal indicating a positive shift in both credit conditions and inflation expectations. However, the acceleration of this momentum indicates a deceleration phase, suggesting market participants should remain vigilant about potential reversals as the macroeconomic landscape evolves. Looking ahead, Friday will bring the revised University of Michigan Consumer Sentiment reading and updated unemployment claims data, which are critical to gauge the health of consumer spending. As markets digest the implications of these metrics and forthcoming key reports, investors should remain adaptable amidst the evolving macro backdrop. The overall tone reflects a cautiously optimistic outlook tempered by geopolitical uncertainties and the associated market volatility.