U.S. chip stocks and airline stocks surge, Qualcomm up over 2%, crude oil quickly pulls back, new developments in the Strait of Hormuz

Reporter | Zeng Jingjiao, Wu Bin

Editor | Li Yutong

On March 17, U.S. stocks’ three major indices all opened higher. As of around 22:10 Beijing time, the Dow Jones Industrial Average rose over 300 points intraday, up 0.7%. The Nasdaq and S&P 500 both increased about 0.6%. Most popular Chinese concept stocks also rose.

Large tech stocks nearly all gained, with Amazon up nearly 1%, Tesla and Apple up over 0.5%. Only Nvidia declined, down 0.66%.

Chip stocks mostly rose, with the Philadelphia Semiconductor Index up over 0.6%. Qualcomm gained over 2%, approving a $20 billion share repurchase plan and raising dividends; ARM rose over 3%, SanDisk up over 2%, Micron Technology up over 1%.

Aviation stocks advanced collectively, with Delta Air Lines up nearly 8%, Alaska Airlines up over 5%, and Delta, American Airlines, and Southwest Airlines each up over 2%. On the news front, American Airlines expects a 10% revenue increase in Q1; Delta raised its Q1 revenue outlook.

Most popular Chinese concept stocks also rose, with the Nasdaq China Golden Dragon Index climbing intraday, currently up slightly by 0.12%. Canadian Solar rose nearly 5%, Miniso and BaWang Tea gained over 3%; Tencent Music plunged over 17%, Kingsoft Cloud fell over 4%, Tencent Holdings-ADR declined nearly 2%.

Gold stocks mostly rose, Harmoni Gold up over 5%, Pan American Silver and Goldros Gold up over 2%, Hecla Mining up over 1%. As of 22:00 Beijing time, spot gold surged in the short term, currently near $5,020 per ounce; spot silver increased over 0.5% intraday, at $81.17 per ounce.

International oil prices fluctuated at high levels throughout the day. As of the report, the gains quickly retreated, with WTI crude oil’s intraday gain narrowing to nearly 2%, at $94.26 per barrel, after previously rising over 5%.

The U.S. and Israel continue to target Iran, with shipping through the Strait of Hormuz, a critical global energy transit route, severely disrupted.

According to CCTV News, on March 17, U.S. White House National Economic Council Director Kevin Hasset said that oil tankers have “begun to pass through the Strait of Hormuz sporadically.” He reiterated that the Trump administration believes military actions against Iran will last several weeks, not months.

According to Xinhua News Agency, U.S. President Trump recently pressured NATO members and allies such as South Korea and Japan to send warships to escort ships through the Strait of Hormuz, but responses have been limited. Military and shipping experts from multiple countries point out that the U.S. alone cannot handle this; they want to “drag allies into the water” because escort missions carry huge risks. Even if a fleet is assembled, it might only restore about 10% of this vital oil transportation artery’s capacity.

Looking ahead, Liu Ying, researcher at Renmin University of China’s Chongyang Financial Research Institute and global governance observer, said that the current oil price outlook heavily depends on geopolitical developments. If the Strait remains blocked, Brent crude could potentially break through $150, posing the most severe supply disruption risk since the 1970s oil crisis. Countries should prepare for stagflation risks.

According to 21st Century Business Herald, amid soaring oil prices, the Federal Reserve, European Central Bank, and Bank of Japan are set to announce interest rate decisions this week. Investors are closely watching for key signals.

Market expectations are that the Fed will keep rates unchanged, but the rate cut outlook has shifted significantly, with the dot plot possibly indicating only one rate cut this year. Officials will assess “stagflation” risks. The ECB is also likely to keep rates steady but may signal a hawkish stance to stabilize market confidence in inflation targets, possibly raising rates once this year. The market expects the Bank of Japan to hold rates steady, but rising energy prices and imported inflation could accelerate future rate hikes.