2026.3.17 US Market Close | Oil prices plunge and stocks rally on easing tensions in the Strait of Hormuz

On March 17, New York's major indices all closed higher, boosted by easing geopolitical tensions in the Strait of Hormuz and a sharp drop in oil prices. The kickoff of Nvidia's annual GTC developer conference also fueled anticipation for artificial intelligence (AI) stocks, sparking a strong tech-led rally. Major Indices - Dow Jones: Gained 0.83% amid improved investor sentiment from easing geopolitical risks. - S&P 500: Rose 1.01%, reflecting both the plunge in oil prices and strength in tech stocks. - Nasdaq: Climbed 1.22% as AI-related stocks rallied in anticipation of Nvidia's GTC conference. Key Issues - Strait of Hormuz Tensions Ease: West Texas Intermediate (WTI) crude prices plunged nearly 5% on news that the U.S. government would partially tolerate Iran's crude oil exports, significantly restoring the market's risk appetite. - Nvidia GTC Conference Kickoff: The company unveiled its next-generation AI chip, the 'Groq 3,' and the 'Vera' CPU server for data centers, boosting excitement for the AI market to a new peak. - AI Ecosystem Growth: The positive catalyst from Nvidia lifted the stock prices of related semiconductor and server companies, including Super Micro Computer and Micron Technology, creating a positive ripple effect across the industry. - Western Digital's Re-evaluation: While highlighted as a key beneficiary of AI data infrastructure, concerns were also raised about its risks, including high revenue concentration (three customers account for 46% of revenue) and ongoing debates about its high valuation. Key Stocks - Delta Air Lines (DAL): Climbed nearly 2.5% on expectations of direct benefits from plunging oil prices. - Micron Technology (MU): Surged over 5% on anticipation of increased demand for high-bandwidth memory required for AI computing. - Super Micro Computer (SMCI): Rose over 1% on expectations of supplying servers equipped with Nvidia's new chips. - Western Digital (WDC): Gained nearly 1.5% after being highlighted as a key beneficiary of AI data infrastructure.