Stocks closed lower yesterday with all of the major indexes down by -1% or more. The tech-heavy Nasdaq got the worst of it, shedding -2.38%, followed by the S&P 500 with -1.74%.

Unease ahead of the deadline for a peace deal with Iran weighed on the market. That deadline was scheduled for Saturday. If no deal was forthcoming, the U.S. would commence with attacking Iran's power plants.

But after the close, President Trump said he was extending that deadline by 10 days to April 6. The President said this was at the request of the Iranian government. He also said that "talks are ongoing," and "they are going very well."

Both sides have big asks for a peace deal. But the market will focus on the Strait of Hormuz and the transportation of oil. If ships can pass thru without fear of being attacked, that should provide relief to higher energy prices. And if Iranian attacks on surrounding neighbors and their energy facilities cease, that too would help lower prices.

And with lower energy prices, should come higher equities. 1) That would reduce the fear of higher oil and gas prices slowing down the economy. And 2), de-escalation in the region would reduce the risk of it turning into a wider conflict, and/or a prolonged one. We are in the back-half of week 4 of the U.S/Israel campaign against Iran. But with Iran still being able to retaliate and snarl oil shipping, timelines for the war dragging out are real. That's why there's hope that a breakthrough can be had with the ongoing negotiations.

Aside from the Middle East conflict, the markets are also working thru a pullback/correction. Big-tech and AI-related names have struggled over the last several months. But I chalk that up to just that, a typical pullback/correction.

A pullback is defined as a decline between -5% and -9.99%, and they happen on average of 3-4 times a year, while corrections are defined as a decline between -10% and -19.99%, and they happen on average of about once a year. As painful as they are when going thru them, they are very common. Every bull market has them.

Although, the Iran situation is exacerbating it.

Regardless, we were due for a pullback. But if you know these are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell.

For those keeping track, all of the major indexes are in pullback territory, while the Nasdaq entered correction territory yesterday. From their all-time highs, the Dow is down -8.42%; the S&P 500 is down -7.19%; the Nasdaq is down -10.65%; the small-cap Russell 2000 is down -8.29%; and the mid-cap S&P 400 is down -6.69%.

I should note, however, that both small-caps and mid-caps are up for the year with the Russell up 0.46%, and the S&P 400 up 1.83%. The other indexes are lower, but more modestly than from their highs. The Dow is down -4.38% YTD; the S&P 500 is down -5.38%; and the Nasdaq is down -7.89%.

Once the Middle East conflict comes to a close, and oil starts to head lower, the fears of a wider conflict will end along with it, and the market can get back to trading on the fundamentals, which point to not only higher prices, but another double-digit gain.

In the meantime, Middle East headlines will continue to influence the market. Both good and bad.

Best,