Now there are fresh reports that Iran has offered the US a proposal to re-open the Strait of Hormuz!
And in response - European/US equity markets are flashing green, but oil benchmarks have offered a muted response.
This could be a classic case of market fatigue given how all the positive announcements in the past have led to disappointment.
Nevertheless, this cautious optimism may keep US equities near record levels ahead of another BIG WEEK for markets.
DID YOU KNOW…
FXTM’s NAS100 hit a fresh all-time high at 27342 last Friday, pushing April’s gains to 15%.
CAN US EQUITY BULLS MAINTAIN GAINS?
Ongoing geopolitical risk could create some headwinds down the road…
But a solid set of earnings from the biggest companies in the world may keep the bull party alive.
Five of the so-called “Magnificent” 7 tech giants with a combined market cap of almost $16 trillion are set to publish their results in the week ahead.
The combined weight of Alphabet, Amazon, Meta, Microsoft and Apple makes up over 40% of the NAS100 weight!!!
Note: Alphabet, Amazon, Meta Platforms and Microsoft have a combined AI expenditure of $650 billion this year. They face rising margin and cost pressures that have been magnified by the war in Iran.
Nevertheless, whatever the outcome of the earnings - it may translate to massive price swings.
POTENTIAL SCENARIOS: