I just noticed that Wall Street is recovering quite well this morning after two difficult days. The major indices are advancing strongly, suggesting that investors are better calibrating the geopolitical outlook. The Dow Jones is up 0.35%, reaching 48,669.25 points; the S&P 500 gains 0.57% to 6,855.47; and the Nasdaq soars 1.10% to 22,763.45.

What's interesting is that volatility is normalizing after hitting this year's highs. The VIX index, the fear indicator we all watch, is noticeably down. Some reports mention that there were indirect contacts between Iranian agents and the CIA, which seems to be reducing uncertainty about the escalation of the conflict. Markets respond well when there are signals that things might not worsen so much.

On the labor front, private hiring surprised to the upside with 63,000 new jobs last month, much better than the 22,000 in January. Analysts expected something close to 50,000, so this boosts overall sentiment. Eight of the eleven sectors in the S&P 500 are in the green, with Consumer Discretionary leading at +2.10% and Technology at +1.37%, which makes sense considering these cyclical sectors are seeking to protect themselves amid the uncertainty.

Volatility remains a factor to watch, but for now, it seems the market is finding its balance. It’s worth closely monitoring how this evolves in the coming days.