Stocks slumped heading into mid-week as news reports showed little progress ending the conflict and crude rebounded. Today brings Chewy earnings and import and export prices.
Markets reacted positively to reports that the United States sent Iran a 15-point proposal aimed at ending the war. The prospect of de-escalation has helped ease risk premiums, particularly in energy, while supporting broader stabilization across asset classes heading into Wednesday’s session.
Though Iran keeps denying there's any negotiation, stocks rose while oil and yields fell early as media reports said the U.S. circulated a peace plan. Earnings and data are thin.
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.
War and oil have the spotlight almost to themselves as the week ahead features little in the way of major data or earnings news. The S&P 500 hit six-month lows Friday.
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.
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