Blink and you’ll miss it
April’s rebound highlights the market’s forward-looking behavior, with equities responding not to confirmed outcomes, but to improving expectations for deescalation in the U.S.-Iran conflict. Stocks spent most of March grinding lower as investors fled risk assets, such as stocks, while interest rates moved higher amid renewed inflation concerns tied to rising energy prices. Those dynamics reversed in a blink, setting the stage for a sharp snapback rally that saw the S&P 500 surge 10.7% over just 11 trading days. A move this fast in such a short period of time is rare with only 20 other instances in S&P 500 history.
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