Markets are rebounding as signs of a potential U.S. exit from Iran ease pressure on crude prices, though uncertainty around supply disruptions continues to drive volatility.
BNN Bloomberg spoke with Ed O’Gorman, CEO at River Wealth Advisors, who said markets remain highly sensitive to oil movements but are likely to shift focus back to earnings growth, sector rotation and broader participation.
Key Takeaways
- Oil prices remain the central driver of volatility, shaping inflation expectations, bond yields and equity performance.
- Markets are reacting to shifting geopolitical signals, with inconsistent messaging keeping volatility elevated.
- Earnings growth remains strong, with expectations for broader sector participation beyond mega-cap tech.
- Opportunities are emerging in beaten-down tech stocks and in industrial and materials sectors tied to AI infrastructure spending.
- Energy stocks have surged roughly 40 per cent this year, increasing the risk of a pullback if oil prices ease.
Read the full transcript below:
LINDSAY: As you are seeing here, markets are reacting positively after U.S. President Donald Trump signalled he wants to wind down the war in Iran. Crude benchmarks eased earlier but later pared back losses, as uncertainty remains over when energy flows in the Persian Gulf could return to normal. Let’s get perspective from Ed O’Gorman, CEO of River Wealth Advisors. It’s great to have you join us. Good morning.
ED: Thank you. Good morning. Glad to be here.
LINDSAY: What are your thoughts on seeing the majority of markets kind of bouncing back today?
ED: I think it’s to be expected, with the market really reacting to news on Iran and very much focused over the past couple of weeks on impacts on oil, looking for closure, some end to the hostilities and reopening of the Strait of Hormuz. Ultimately, we’re getting some good news here. We’ve had a lot of head fakes, a lot of confusion around where things are going, mixed signals. Hopefully this is the beginning of the end, and the markets are anticipating that clearly.
LINDSAY: And you say you expect markets to refocus soon on earnings strength and broadening participation. It is interesting, right? Because we’ve seen a lot of strength coming out of earnings reports, and usually markets would be reflecting that. That hasn’t been the case over the last month or so.
ED: Yeah. I mean, I think we do get back to where we were in January, February, and really looking back over the past year, double-digit earnings growth for S&P 500 companies for the past several quarters. Looking ahead, there’s really broadening earnings performance here in the U.S. markets. We started to see that at the beginning of the year, with a bit of concern over AI and its impact across other industries, some divergence in returns across sectors and subsectors, but generally a broadening of participation, which was really good to see given the concentration last year in mega-cap tech names. So I think we get back to focusing on earnings, focusing on where the Fed is headed, and fundamentals shine through again. But for now, until we have some resolution or sense of where things are headed, I think we’re stuck in this period of volatility.
LINDSAY: You mentioned AI, so I want to ask, in terms of sectors that you like right now or that you feel would be good to invest in, is the tech sector one of them?
ED: Yes. Given what we’ve gone through in this first quarter, with a significant correction in some of these big tech names, from a valuation perspective there appear to be some reasonable entry points forming. Given the correction and the shift in markets out of tech and AI, there are opportunities to look at mega-cap tech names and some software companies that have been thrown out with the bathwater, so to speak. We think there are good opportunities there. The place we want to avoid right now, at least from an entry-point perspective, is probably energy. Oil stocks have had a significant run-up, almost 40 per cent in the first quarter, so we’re really looking to potentially take some profits there.
LINDSAY: Are there any other sectors you like? I take your point on staying away from energy at the moment, because we really don’t know what’s going to happen there. But in terms of materials or industrials, are you interested in those?
ED: Absolutely. One of the things driving markets is the buildout of data centres and massive capital expenditures. A lot of that is going into chips and memory, but also data centre development that is impacting heavy equipment manufacturers, materials, electrical component suppliers, connectivity utilities. It’s really a widespread boom in spending, and I think a lot of infrastructure suppliers and developers are going to benefit.
LINDSAY: You mentioned staying away from energy because there’s the potential for a reversal in oil prices. Do you expect that to happen soon? What do you think a realistic timeline would be?
ED: It’s hard to say what a realistic timeline is. We’re probably not going back to pre-war levels very soon, but we could see futures come down from the highs based on diplomacy in the Middle East. The restoration of damage is going to take time, and it will take time for energy prices to stabilize. What we’ll likely see in equity markets is forward-looking pricing and discounting. I would expect equities in that sector to come off the boil.
LINDSAY: I did want to ask you about Nike. This is a story we’re following closely today. The stock is down more than 13 per cent, the lowest in a decade, after its latest earnings report. The turnaround plan is not going according to plan. What are your thoughts, and is this a broader consumer story?
ED: I think it’s more of a Nike story than a broad consumer story. Nike is in a turnaround scenario, and the results were disappointing, particularly internationally in Asia. North America sales were roughly in line or slightly better, but still not meeting expectations. It has a lot to do with Nike’s execution and competition in its space. It’s tough to get a clear read on consumers right now. Statistically, sentiment has been trending up and fairly solid, but we don’t yet have a good read on how higher fuel prices are filtering through. The longer that lasts, the more it will weigh on consumer spending. But heading into this period, the U.S. consumer has been relatively strong, with sentiment indicators ticking higher and retail sales above average. That said, those are February numbers, so we don’t yet see the full impact of higher energy prices.
LINDSAY: We’ll have to leave it there. Ed O’Gorman, CEO of River Wealth Advisors. Thanks for joining us today.
---
This BNN Bloomberg summary and transcript of the April 1, 2026 interview with Ed O’Gorman are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
