Evercore Highlights Microsoft (MSFT), Amazon (AMZN), and Caterpillar (CAT) as Prime Buys if Market Conditions Improve

Key Takeaways

• Equity futures advanced following reports that Trump may pursue an Iran conflict exit strategy without requiring full Strait of Hormuz access
• S&P 500 futures climbed 0.8%, Nasdaq 100 futures advanced 0.7%, Dow futures surged 0.9%
• Crude oil breached $100 per barrel for the first time since 2022; VIX volatility gauge holds above 30
• Evercore ISI suggests market participants overlook a “stability” outcome and identifies Microsoft, Amazon, and Caterpillar among preferred holdings
• Federal Reserve Chair Powell indicated limited contagion threats from private credit and stable inflation trends

Equity index futures pushed higher on Tuesday following reports that President Trump indicated to senior officials a possible willingness to conclude military operations in Iran without insisting on complete Strait of Hormuz access.

This represented a notable shift from Trump’s earlier stance threatening military action to force the waterway open. The softened rhetoric provided a boost to futures trading.

S&P 500-linked contracts advanced 0.8%. Nasdaq 100 futures climbed 0.7%. Dow Jones futures surged 0.9%.

Yet despite the morning rally, market participants remain on edge. The CBOE Volatility Index has persisted above the 30 threshold across multiple trading sessions, signaling ongoing market unease.

Crude oil markets similarly reflect persistent geopolitical concerns. West Texas Intermediate crude settled above the $100 mark for the first time in over two years as the Middle East conflict extends into its fifth week.

Messaging from the White House has lacked consistency. Though certain indicators suggest diplomatic channels may be gaining traction, Trump simultaneously suggested the United States could move to take control of Iranian petroleum assets.

Federal Reserve Chair Jerome Powell offered some reassurance regarding monetary policy direction. He stated that systemic risks from private credit markets remain minimal and inflationary dynamics appear well-controlled, implying rate increases are unlikely in the near term.

Market participants are now awaiting Tuesday’s consumer confidence data and the February Job Openings and Labor Turnover Survey for additional insight into economic conditions.

Evercore Identifies Equity Opportunities in Stabilization Scenario

Strategists at Evercore ISI argue that market participants may be overly concentrated on negative outcomes while remaining unprepared for a potential return to market equilibrium.

Evercore’s stabilization framework envisions a Middle East cease-fire agreement, crude oil retreating toward the $88 level, and the Federal Reserve maintaining current policy or implementing cuts while the 10-year Treasury yield remains within a 4.0% to 4.6% range.

Within the technology sector, the firm recommends Microsoft and Snowflake as foundational holdings, while also pointing to Salesforce and ServiceNow as attractive opportunities.

Microsoft Corporation, MSFT

Amazon receives particular attention for trading at its lowest price-to-earnings multiple in three years, with strategists anticipating a possible fundamental inflection point during the current year.

In the semiconductor space, ON Semiconductor, Microchip Technology, and NXP Semiconductors are positioned as beneficiaries of a potential automotive sector recovery.

Travel and Industrial Sectors Draw Analyst Attention

Carrier stocks receive emphasis within the consumer discretionary category. Delta’s March revenue figures are tracking 25% ahead of year-ago levels. United Airlines has posted ten of its strongest booking weeks on record during the current quarter.

Caterpillar earns recognition for order book visibility. Strategists note that the company’s 2026 backlog coverage stands at the most robust level witnessed in more than fifteen years.

Financial technology companies including Affirm, Adyen, and Block have experienced significant valuation compression, though Evercore maintains their underlying business fundamentals remain sound. The firm’s payments sector analyst characterized the selloffs as reflecting “excessive negativity” in current valuations.

Additional companies featured on Evercore’s monitoring list include PulteGroup, Danaher, Align Technology, and Union Pacific.

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