I hope everyone had a great weekend. It’s officially spring week, with Friday marking the start of the Spring Equinox. Get those golf clubs ready!
Markets opened higher this morning as investors assess the latest developments in the Iran conflict. Oil remains the focal point, as uncertainty around the Strait of Hormuz persists. Should we see some of the oil tanker congestion begin to clear, I think we could see a dramatic snapback in the market. All things considered, the S&P 500 remains within ~5% of all-time highs, which I consider a bullish indicator. This week is a big one for central banks, as we get the Fed’s latest interest rate decision on Wednesday, along with seven other central bank decisions throughout the week. I don’t anticipate rate changes; however, it will be interesting to hear how Chair Powell, among others, addresses the outlook going forward. U.S. markets have lowered their rate-cut projections to just under one full 0.25% cut in 2026. This reflects fears of higher inflation (with oil as an input cost) and a general economic slowdown should the Iran conflict drag on. Outside of geopolitical events, AI remains front and center, with Nvidia’s CEO giving a keynote speech today at its GTC conference. I think patience remains the best option as we move through the next couple of weeks. Remember, these markets move fast, and should we see a positive catalyst related to Iran, I anticipate a sharp jump higher. Please continue to reach out with any questions or comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management.
Have a great week!