Wall Street rebounded after an initial dip due to ceasefire violations in the Middle East, with the S&P 500 up 0.7%, the Nasdaq rising over 0.8%, and the Dow Jones gaining 0.6%. The VIX index dropped more than 5%, falling below the critical 20-point mark for the first time in a month, signaling a decline in investor anxiety. Meanwhile, inflation data from the PCE index showed a month-on-month increase of 0.4%, aligning with expectations, while Q4 GDP growth was revised down to 0.5% year-on-year, highlighting ongoing economic concerns.
The geopolitical landscape remains volatile, particularly with Iran’s accusations against Israel and the start of direct peace negotiations led by Benjamin Netanyahu. In Europe, mixed market performance was observed, with major indices declining, while oil prices stabilized around $95 per barrel.
For market professionals, the key takeaway is the potential for increased volatility stemming from geopolitical tensions and economic indicators, which could impact trading strategies and portfolio management in the coming weeks.
Source: xtb.com