BlockBeats News, April 16th, during midweek trading, the S&P 500 Index hit a record high. This is the first record high since the outbreak of the Iran war, as the market’s expectations of easing geopolitical tensions and strong earnings outlook have attracted investors back to risk assets.
Setting a new high while the geopolitical crisis is still ongoing marks a shift in market risk pricing, as traders seem more willing to discount near-term escalation risks. Last month, when the conflict broke out, the stock market plummeted, the oil market experienced a historic shock, and renewed concerns about inflation and the outlook for U.S. interest rates.
Since the conflict erupted on February 28th, the S&P 500 Index has fallen as much as 9%, but has not met the criteria for a confirmed “technical correction,” while the Nasdaq and Dow have both confirmed entry into correction territory.
The market is also supported by positive corporate earnings prospects. Senior executives at major banks stated that despite the oil price shock, U.S. consumers remain resilient, and there is an ample pipeline of M&A and IPO projects. (Xinhua)
