Key insights
- Escalating tensions between the US and Iran in the Strait of Hormuz, coupled with unrest in Lebanon, are driving oil price volatility. While the Nasdaq-100 remains resilient, the geopolitical risks and potential for higher energy costs pose a downside risk to US equities, particularly if inflation expectations rise and force the Fed to maintain a hawkish stance.
It seems Nasdaq is no longer effected by war, inflation, oil and food prices or any other boring human problem, unfortunately to my understanding AI is not immune to electricity prices either. So what is going on with the tech world, has Agentic AI took over trading or there is just too much money in circulation and Nasdaq will be testing 30K even if Nuclear war was about to break tomorrow? Below are few news headlines from today
"US military “blew up” six Iranian boats Monday after Tehran launched multiple cruise missiles, drones and small boats at US Navy ships and commercial vessels, US Central Command said. Trump warned Iranian forces they would be “blown off the face of the Earth” if they attempted to target US ships in the region. Oil prices rose on concerns about the safety of transiting the waterway. Average gas prices could reach $5 a gallon if the strait remains closed, an oil market expert said. The Israeli military has issued a fresh evacuation order for 10 villages in southern Lebanon."