On April 7, the A-share market reopened for trading after the Qingming Festival break. During the holiday period, overseas markets, including those in Japan and South Korea, witnessed a volatile upward movement. Meanwhile, international oil and gold prices moved in different directions, contributing to an enhanced market risk appetite. Against the backdrop of persistent geopolitical tensions in the Middle East and uncertainties surrounding global oil prices, the subsequent trajectory of the A-share market has garnered considerable attention. Industry analysts point out that although short-term uncertainties stemming from the U.S.-Israel-Iran conflicts may dampen market risk appetite, the medium- to long-term positive outlook for A-shares remains intact. As positive signals gradually emerge, the market is anticipated to sustain its upward momentum in the second quarter. Regarding allocation strategies, it is recommended to continue seeking undervalued opportunities in the short term within industries bolstered by policy support and demonstrating positive industrial trends. The growth sector remains the primary focus of this rally, with particular emphasis on sub-sectors such as AI computing power, semiconductors, memory chips, and innovative pharmaceuticals.