Calm before the storm?
#WallStreet bounces between drums of war and the ghost of oil at $100
After a negative streak of three weeks that brought the
#SP500 to its yearly lows, Wall Street futures start the week with an unexpected bullish tone. Investors are trying to shake off the pessimism, boosting futures of the
#NASDAQ by 1.18% and those of the
#DowJones by nearly 350 points, in an attempt at a technical recovery against an explosive geopolitical backdrop.
Geopolitics on high alert: The conflict between the U.S. and Iran escalates following the attacks ordered by President Trump against military targets on Kharg Island. Although the oil infrastructure remained intact, the threat of direct attacks on wells and facilities if the blockade in the Strait of Hormuz continues keeps the market on edge.
Oil on the brink: WTI crude has shown extreme volatility, surpassing $100 overnight before retreating 3% to $95.68. The potential formation of an international coalition led by the U.S. to escort tankers aims to alleviate the logistical stranglehold in the region.
Resilience under suspicion: Despite the S&P 500 being only 5% from its all-time highs, analysts like Ed Yardeni warn that optimism about profits in 2026 and 2027 may be ignoring the systemic consequences of a prolonged war.
Market attention is now divided between Nvidia's GTC conference (the thermometer for the tech sector) and the upcoming Federal Reserve meeting, where, although no changes in rates are expected, the tone on inflation and war will be decisive.
#oil $QQQon
$NVDAon
$MSTR