The S&P 500 flirts with its level of all time, oil contracts increased by 1.4% after the ceasefire in the Middle East
Despite little change in American actions on Wednesday, investors watched the markets closely.
The S&P 500 closed the day just 51 points from its closing price of 6144 on February 19.
The Dow Jones closed the day by around 106 points, but always higher than its stockings in the middle of the afternoon on Monday. Meanwhile, the Nasdaq, heavy in technology, finished 0.3%, closing Tuesday at 19 974. It also flirts with a return to its summit of 20,173 points from December 16, 2024.
The fact that American actions are not only recovering from their confidence in April, but the rebound in the records they saw before President Donald Trump’s pricing policies indicate that the markets may have started to readjust to the era of increased uncertainty that investors are.
The overall levels of market uncertainty have decreased compared to their peaks in the immediate consequences of Trump’s Trump’s pricing policy. (A point reiterated by the president of the federal reserve Jerome Powell during the testimony of the congress on Tuesday). But market conditions have not returned to the routine of the human routine that investors welcome.
On the other hand, the many problems that could go around the markets – from the Middle East, to the imminent inflationary impacts of the prices, to an unprecedented government spending bill – are in a detention scheme. Yes, they were not resolved but they did not aggravated either.
The United States has announced a ceasefire between Israel and Iran. Trump stopped withdrawing and restoring prices daily as he had been a few weeks ago. The United States and China seem to work on a trade agreement, but there is nothing other than the withdrawal of tariffs by more than 100% that they had placed each other on each other. The bill on expenses, which would send the deficit in the arrow, is for the moment, mired in the sandpits of the American legislative management.
This week started with collapse in the equity market on fears that the conflict in the Middle East would disrupt oil flows. But what a difference a few days can do.
On Wednesday, oil contracts increased 1.4% after falling earlier this week.
Actions also experienced a similar drop earlier this week. After the initial shock on Monday, a ruddler and quite surprising reaction followed, noted Jake Schurmeier, portfolio director at Harbor Capital and a former member of the Markets Bank of New York group of the Federal Reserve Bank.
“The risk premium on the markets lasted five hours,” Schurmeier told Fortune. “I think the answer could be that the markets become more effective to get used to these geopolitical reviews.”
The last days have highlighted a reactionary market, said Schurmeier.
“The broader point is that we have become if in the short term,” he said. “Everything seems to me as a very cynical reflection and in the short term at this stage.”
With the agitated markets, including in intraday trading, some investors keep an eye on the long game. Bob Robotti, president and director of investments for the director of Robotti & Company assets, said that it was focused on the structural risks confronted with the economy rather than on the short -term geopolitical volatility.
For example, several major forces will increase inflation, he said. Key inflationary pressures such as “all aspects of prices, the evolution of supply chains, additional friction costs” are not temporary but represent fundamental changes in the functioning of the world economy, said Robotti. He sees the result of these quarter -work causing permanent prices.
“If inflation is a persistent event and higher interest rates are necessary, this means multiple lower than everything in the investable world,” said Fortune Robotti. “This is particularly worrying given the concentration of capital in growth assets and the investment capital that have benefited from the low-rate environment, which makes the whole system more vulnerable to a change in inflationary regime.”
