Monday's rally on news of talks with Iran faded, and renewed vigor may depend on evidence of progress toward re-opening the Strait. Earnings are light but March PMI data is ahead.
Liz Ann and Collin examine how geopolitical tensions, rising energy prices, and shifting inflation expectations are driving sharp rotations beneath the surface of equity markets.
The federal funds rate will remain 3.5% to 3.75%. The 'dot plot' still projects a single rate cut this year, and the Fed sees slightly stronger economic growth and inflation.
A properly functioning Strait of Hormuz holds the keys to clarity around the growth, inflation, and market shock that has stemmed from the war in the Middle East.
The worsening energy shock from the Iran War has raised risks of a more severe crisis. It may resolve quickly, but the longer it persists, the larger the possible economic damage. Asia and Europe are most vulnerable.
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