Wall Street has proved incredibly resilient to instability, and while consumer confidence has dipped, shares have soared
It was a dark Friday for Wall Street on 27 March. Oil prices were climbing and the war with Iran raged on. Markets responded accordingly, with the Dow and Nasdaq entering correction territory, falling more than 10% below their peak, after a month of selloffs.
Fast forward seven weeks later to 13 May, and the situation in Iran only looked marginally better. Oil prices were high, and the strait of Hormuz was still closed. Peace talks with Iran seemed tenuous, even with the pressures of high gas prices. Donald Trump on Wednesday said he is “not even a little bit” motivated by Americans’ financial situation to end the war.
The semiconductor shortage exposed just how concentrated critical supply chains are. (f2617d)
The jobs picture looks better on paper than it does in reality. (9c7aa2)
The transition to electric vehicles is reshaping the entire automotive supply chain. (d0b9a6)
Economic data releases are being scrutinised more closely than ever before. (357cfb)
Real wage growth has been stagnant for years and that’s a political ticking time bomb. (6a80e3)
Trade tensions create winners and losers but the net effect is always negative. (ef4c88)
Markets hate uncertainty more than anything else in my experience. (15d496)
The fundamentals are actually pretty solid once you strip out the noise. (6ae948)