Good Morning,
I hope everyone had a happy Easter weekend. It’s an exciting week in sports, starting tonight with Michigan taking on UConn for the NCAA men’s basketball national championship and continuing Thursday with the Masters Tournament. Go Blue!
Markets opened around the flatline this morning, coming off last week’s stronger than expected March jobs report. Uncertainty surrounding the Iran war has investors cautious about the path forward. President Trump issued Iran a Tuesday evening deadline to reopen the Strait of Hormuz or face a bombing campaign focused on bridges and power plants. I am curious to hear what is said during President Trump’s news conference today from the Oval Office at 1:00 PM.
We are in a headline-driven market, with any positive sentiment likely to move stocks higher. Outside of geopolitics, it’s a big week stateside from an inflation standpoint, with core PCE due Thursday and March CPI on Friday. In my opinion, regardless of the inflation readings, market momentum rests on developments in Iran and the price of oil. Should we see a constructive path toward resolution, I would expect markets to bounce and inflation to eventually benefit from receding oil prices.
With so much uncertainty and the speed at which these markets move, I continue to advise patience to help avoid irrational decisions. Please continue to reach out with any questions.
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!