SPX: Energy leads as volatility persists S&P 500SP:SPXXBTFXInvestors' sentiment continues to be under the impact of increasing oil prices. In a speech held by the US President, it was noted that the ongoing war with Iran will most probably continue within the next two to three weeks. On the other hand, the US jobs market showed some improvement, putting back a glimpse of confidence among investors. Although markets tried to enter into modest recovery for the rest of the week, mostly supported by US macro data, still, the fear of increasing oil prices and its potential impact on future inflation is still placing most investors on hold. At the start of the week the S&P 500 reached its lowest level since August 2025, at 6.320. This level represents some 9,7% total drop from its ATH, and placed the index into clear oversold territory as per technical analysis on a daily chart. For the rest of the week, the recovery of 4% followed, when the S & P 500 managed to end the week (Friday was a holiday in the US, markets were closed) at 6.582. However, the question still stands if this is only a short term retracement, or the start of the recovery? The answer to this question will depend solely on developments in the Middle East in the future period and the price of oil. Analysts are in agreement that high volatility should be expected also in the future period. The S&P 500 this week was shaped by a clear rotation across sectors. Energy stocks continue to outperform as oil prices surged on Middle East tensions, while consumer discretionary and EV-related names came under pressure amid signs of weakening demand. Mega-cap tech struggled to maintain leadership, with rising AI-related costs and broader valuation concerns weighing on sentiment. At the same time, investors shifted toward value and defensive areas, including financial and data-driven companies, which showed relative strength. Overall, positioning remains cautious. It should be considered that the week ahead brings US PCE and Inflation data for March, which could bring back some volatility to major US indexes, as well as further negative developments in the Middle East conflict.