Surging Oil Prices Trigger Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Should l Buy AMAT?
Source: NASDAQ.COM
- Oil Price Surge: WTI crude oil prices rose over 4% today as the Pentagon develops military options against Iran, raising concerns about future supply disruptions and contributing to a 0.50% decline in the S&P 500 Index.
- Labor Market Stability: Initial jobless claims in the U.S. rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating resilience in the labor market despite cautious economic outlooks.
- OECD Inflation Forecast Raised: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impacts of the war in Iran, which may lead investors to reassess market risks.
- Escalating Tensions in the Middle East: Saudi Arabia's agreement to allow U.S. military access to King Fahd Air Base signals increased regional pressure on Iran, potentially leading to broader military conflict that could further disrupt global oil and gas supply chains.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 410.640
Low
190.00
Averages
288.05
High
425.00
Current: 410.640
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Middle East Tensions Drive Oil Prices Higher
- Oil Price Surge: Oil prices have risen sharply, with Brent crude futures climbing 2.8% to $104.06 per barrel due to deadlocked peace talks between the U.S. and Iran, which have effectively shut the vital Strait of Hormuz, raising concerns over supply disruptions.
- Dollar Strengthens: The dollar gained 0.2% against the Japanese yen, reaching 156.88 yen, as it serves as a liquidity store during risk events, indicating increased demand for safe-haven assets amid escalating tensions in the Middle East.
- Stock Index Volatility: S&P 500 futures fell 0.3% and Nasdaq futures dipped 0.2%, reflecting investor caution ahead of upcoming corporate earnings reports, despite the market hitting record highs last week.
- Japanese Market Recovery: Japanese stock futures traded at 63,475, still catching up to Wall Street's Friday jump, indicating market reactions to U.S. economic data while also focusing on potential impacts from a hawkish shift at the Bank of Japan.
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- Missing AI Ecosystem Players: Amazon, Alphabet, and Meta play crucial roles in the AI ecosystem, yet their absence from the top holdings of the Vanguard Information Technology ETF due to revenue classification may lead investors to overlook significant opportunities.
- Market Share Insight: With Amazon and Alphabet's cloud platforms collectively holding a 42% market share, their exclusion would leave the AI ecosystem lacking critical infrastructure, potentially stunting industry growth.
- Capital Expenditure Expectations: These three companies are projected to spend between $500 billion and $530 billion in capital expenditures in 2023, with a significant portion allocated to AI initiatives, underscoring their pivotal role in advancing AI technology.
- Investment Strategy Shift: Rather than investing in the Vanguard Information Technology ETF, opting for a Nasdaq-100 ETF like the Invesco QQQ Trust ETF would provide better exposure to the AI sector, as it includes these key players along with other tech giants.
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- Tech ETF Overview: The Vanguard Information Technology ETF (VGT) shows a +2.69% change with a current price of $112.44 and a trading volume of 3.9 million shares, indicating sustained investor interest in tech stocks, yet it lacks key AI players in its top holdings.
- Holdings Structure Analysis: Over 44% of VGT's top holdings are concentrated in Nvidia, Apple, and Microsoft, while missing Amazon, Alphabet, and Meta, which play crucial roles in the AI ecosystem, highlighting potential missed investment opportunities.
- Missing AI Infrastructure: Amazon and Alphabet together hold a 42% market share in global cloud platforms, and their absence would deprive the AI ecosystem of critical infrastructure, impacting the potential for future AI development.
- Better Investment Options: Given VGT's limitations, investors should consider the Invesco QQQ Trust ETF, which includes Nvidia, Microsoft, and other heavyweight companies in the AI sector, providing a more comprehensive exposure to AI investments.
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U.S. Stocks Close Higher, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 rose by 0.84% and the Nasdaq 100 increased by 2.35%, reaching record highs, reflecting market optimism driven by robust corporate earnings despite concerns over the Iran conflict.
- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
See More
Market Enthusiasm Drives Semiconductor Stocks Higher
- Market Drivers: Jim Cramer noted that the market continues to be driven by enthusiasm for semiconductor and data center stocks, with both the Nasdaq Composite and S&P 500 hitting new highs on Friday, as the S&P 500 rose 2.3% and the tech sector surged 7%, reflecting strong investor confidence in AI-related stocks.
- Investment Advice: Cramer cautioned against tying an entire portfolio to data center stocks, yet he believes these stocks represent a long-term market shift, advising to buy on market dips and emphasizing that “it’s still a gigantic opportunity.”
- Future Outlook: Next week, Constellation Energy will report on its clean energy supply related to AI infrastructure, with Cramer suggesting that its performance is solid, and market sentiment will influence future Federal Reserve rate expectations, particularly as the consumer price index report could reignite optimism for easier monetary policy in 2026.
- Industry Dynamics: Nvidia's $2 billion investment in Nebius highlights the intensifying competition in AI, which Cramer believes will drive growth for cloud infrastructure companies, while Cisco Systems' strong performance in the data center space will continue to attract investor attention.
See More
Semiconductors and AI Drive Market Upward
- Market Drivers: Jim Cramer highlighted that the market is primarily driven by enthusiasm for semiconductors and data center stocks, with both the Nasdaq Composite and S&P 500 hitting new highs, the latter rising 2.3% this week, while the technology sector surged 7%, reflecting strong investor confidence in AI-related stocks.
- Investment Advice: Cramer cautioned investors against overly concentrating their portfolios in data center stocks, although he believes these stocks represent a long-term market shift, advising to buy on down days to seize this significant investment opportunity.
- Upcoming Earnings Reports: Next week, several companies will report earnings, including Qnity Electronics and Cisco Systems; Cramer believes Qnity's strong performance will further support its stock price, while Cisco is gaining attention due to its robust data center business performance.
- Economic Indicator Impact: Cramer anticipates that the consumer price index report will influence future Federal Reserve rate policies, with a softer number potentially reigniting optimism for easier monetary policy in 2026, further boosting market sentiment.
See More
Middle East Tensions Drive Oil Prices Higher
- Oil Price Surge: Oil prices have risen sharply, with Brent crude futures climbing 2.8% to $104.06 per barrel due to deadlocked peace talks between the U.S. and Iran, which have effectively shut the vital Strait of Hormuz, raising concerns over supply disruptions.
- Dollar Strengthens: The dollar gained 0.2% against the Japanese yen, reaching 156.88 yen, as it serves as a liquidity store during risk events, indicating increased demand for safe-haven assets amid escalating tensions in the Middle East.
- Stock Index Volatility: S&P 500 futures fell 0.3% and Nasdaq futures dipped 0.2%, reflecting investor caution ahead of upcoming corporate earnings reports, despite the market hitting record highs last week.
- Japanese Market Recovery: Japanese stock futures traded at 63,475, still catching up to Wall Street's Friday jump, indicating market reactions to U.S. economic data while also focusing on potential impacts from a hawkish shift at the Bank of Japan.
See More
Caution Advised for Tech ETF Investments
- Missing AI Ecosystem Players: Amazon, Alphabet, and Meta play crucial roles in the AI ecosystem, yet their absence from the top holdings of the Vanguard Information Technology ETF due to revenue classification may lead investors to overlook significant opportunities.
- Market Share Insight: With Amazon and Alphabet's cloud platforms collectively holding a 42% market share, their exclusion would leave the AI ecosystem lacking critical infrastructure, potentially stunting industry growth.
- Capital Expenditure Expectations: These three companies are projected to spend between $500 billion and $530 billion in capital expenditures in 2023, with a significant portion allocated to AI initiatives, underscoring their pivotal role in advancing AI technology.
- Investment Strategy Shift: Rather than investing in the Vanguard Information Technology ETF, opting for a Nasdaq-100 ETF like the Invesco QQQ Trust ETF would provide better exposure to the AI sector, as it includes these key players along with other tech giants.
See More
Risks and Opportunities in Tech ETF Investments
- Tech ETF Overview: The Vanguard Information Technology ETF (VGT) shows a +2.69% change with a current price of $112.44 and a trading volume of 3.9 million shares, indicating sustained investor interest in tech stocks, yet it lacks key AI players in its top holdings.
- Holdings Structure Analysis: Over 44% of VGT's top holdings are concentrated in Nvidia, Apple, and Microsoft, while missing Amazon, Alphabet, and Meta, which play crucial roles in the AI ecosystem, highlighting potential missed investment opportunities.
- Missing AI Infrastructure: Amazon and Alphabet together hold a 42% market share in global cloud platforms, and their absence would deprive the AI ecosystem of critical infrastructure, impacting the potential for future AI development.
- Better Investment Options: Given VGT's limitations, investors should consider the Invesco QQQ Trust ETF, which includes Nvidia, Microsoft, and other heavyweight companies in the AI sector, providing a more comprehensive exposure to AI investments.
See More
U.S. Stocks Close Higher, Nasdaq Hits Record High
- Strong Market Performance: The S&P 500 rose by 0.84% and the Nasdaq 100 increased by 2.35%, reaching record highs, reflecting market optimism driven by robust corporate earnings despite concerns over the Iran conflict.
- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
See More
Market Enthusiasm Drives Semiconductor Stocks Higher
- Market Drivers: Jim Cramer noted that the market continues to be driven by enthusiasm for semiconductor and data center stocks, with both the Nasdaq Composite and S&P 500 hitting new highs on Friday, as the S&P 500 rose 2.3% and the tech sector surged 7%, reflecting strong investor confidence in AI-related stocks.
- Investment Advice: Cramer cautioned against tying an entire portfolio to data center stocks, yet he believes these stocks represent a long-term market shift, advising to buy on market dips and emphasizing that “it’s still a gigantic opportunity.”
- Future Outlook: Next week, Constellation Energy will report on its clean energy supply related to AI infrastructure, with Cramer suggesting that its performance is solid, and market sentiment will influence future Federal Reserve rate expectations, particularly as the consumer price index report could reignite optimism for easier monetary policy in 2026.
- Industry Dynamics: Nvidia's $2 billion investment in Nebius highlights the intensifying competition in AI, which Cramer believes will drive growth for cloud infrastructure companies, while Cisco Systems' strong performance in the data center space will continue to attract investor attention.
See More
Semiconductors and AI Drive Market Upward
- Market Drivers: Jim Cramer highlighted that the market is primarily driven by enthusiasm for semiconductors and data center stocks, with both the Nasdaq Composite and S&P 500 hitting new highs, the latter rising 2.3% this week, while the technology sector surged 7%, reflecting strong investor confidence in AI-related stocks.
- Investment Advice: Cramer cautioned investors against overly concentrating their portfolios in data center stocks, although he believes these stocks represent a long-term market shift, advising to buy on down days to seize this significant investment opportunity.
- Upcoming Earnings Reports: Next week, several companies will report earnings, including Qnity Electronics and Cisco Systems; Cramer believes Qnity's strong performance will further support its stock price, while Cisco is gaining attention due to its robust data center business performance.
- Economic Indicator Impact: Cramer anticipates that the consumer price index report will influence future Federal Reserve rate policies, with a softer number potentially reigniting optimism for easier monetary policy in 2026, further boosting market sentiment.
See More
