Despite a little change in American stocks on Wednesday, investors watched the markets closely.
The S&P 500 today closed only 51 points from the high price of the high of 6,144 on February 19.
the Dao Jones closed today about 106 points, but it is still higher than his lowest level on Monday. At the same time, heavy technology Nasdak It ended 0.3 %, with a closure on Tuesday in 19,974. It is also joking with a return to the highest level ever, reaching 20,173 points from December 16, 2024.
The fact that American stocks not only recover from the April defeat, but a recovery to the highest levels in the records they saw before President Donald Trump’s policies, indicate that the markets may have begun to reset the era of increased uncertainty that investors themselves.
The total levels of uncertainty in the market Decline Compared to their peaks in the wake of this directly to the tariff policy that follows Trump. (The Federal Reserve Chairman, Jerome Powell, was reaffirmed by Congress certificate Tuesday). But the market conditions did not return to a wet routine that investors welcomes.
On the other hand, many issues that can fall markets – from The Middle EastTo loom on the horizon Inflationary effects From definitions, to an unprecedented government Bill spending– It is in a knot style. Yes, they were not resolved, but they did not increase.
The United States declared cease-fire Between Israel and Iran. Trump has stopped removing and re -tariffs on a daily basis as it was just a few weeks ago. It seems that the United States and China are working on a The commercial deal However, there is nothing tangible other than removing the tariffs that exceed 100 % that they put on each other. The spending bill, which will be sent The deficit risesCurrently, it is drowned in the sandy of the American legislative branch.
This week began to decline in the stock market due to concerns about the conflict in the Middle East Oil flows are disrupted. But what teams can make two days.
On Wednesday, future oil contracts increased by 1.4 % after declining earlier this week.
The stocks also witnessed a similar decrease earlier this week. After a preliminary shock on Monday, this was followed by a somewhat surprising and silent reaction, indicated by Jake Shormeer, the wallet manager in Harbour Capital and a former member of the Federal Reserve Markets Group in New York.
“The risk premium on the market has continued for five hours,” Shormeer told Fortune: “I think the answer can be that the markets have become more efficient in getting used to these geopolitical properties.”
Shormeer said that the rise and landing in the past few days indicated a reactionary market.
“The broader point is that we are in the short term,” he said. “All this amazes me as a very satirical and short -term thinking at this stage.”
With volatile markets, including in trading during the day, some investors monitor the long game. Bob Robotti, the president and chief investment official in the Robotti & Company, said he focuses on the structural risks facing the economy instead of short -term geopolitical fluctuations.
For example, many major powers will prepare inflation to the top. Robotti said the main inflationary pressures such as “all aspects of definitions, changing supply chains, and additional friction costs” are not temporary but are basic transformations in how the global economy works. He sees the result of these transformations, which leads to a permanent increase in prices.
“If inflation is a constant event and higher interest rates, this means a decrease in complications in everything in the investment world,” Roboty told Fortune. “This is particularly concerned given the focus of capital in the assets of growth and private stocks that have benefited from the low -price environment, making the entire system more vulnerable to changing the inflationary system.”
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