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Wall Street Eyes Weekly Gain as Peace Hopes Lift Futures

  Wall Street Poised for Weekly Gain as Futures Climb on Middle East Peace Hopes Wall Street looked set to close the week on a positive note as U.S. equity futures climbed Friday, supported by renewed optimism that diplomatic progress in the Middle East could ease geopolitical tensions. Investors have been highly sensitive to any signs of de‑escalation, and this week’s developments helped unwind some of the risk premiums that had weighed on global markets. Oil prices, which surged earlier in the month on fears of supply disruptions, pulled back again as ceasefire discussions gained traction. Lower energy costs have helped cool inflation expectations, giving markets a bit more breathing room after a volatile stretch. Major U.S. indexes are now on track for a weekly gain, with tech and consumer stocks leading the rebound. Still, analysts caution that sentiment remains fragile: any setback in negotiations could quickly revive market turbulence. For Canadian investors, easing oil v...
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US stocks hope for economic stability after record highs

 


The US stock market has been on a roll this year, with the S&P 500 index up by 17% and hovering around 6% below its record high from January 2022. The market’s performance in the coming weeks will depend on how confident investors are that the US economy will experience a soft landing..

A soft landing is a scenario where the economy slows down moderately without going into a recession . Morgan Stanley Research believes that the US economy can achieve a soft landing, given the current housing cycle, income and spending trends, a stable labor market, and receding inflation. However, banking-sector turmoil and a resulting credit squeeze still pose some recession risk.

The recent stock market rally has Wall Street re-examining the potential for the US economy to pull off a soft landing scenario. Goldman Sachs expects the economy to react positively to the Fed’s monetary policy in 2024.

It’s worth noting that the stock market is not always a reliable indicator of the economy’s health. Therefore, investors should be cautious and not celebrate too soon.



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