Summary

• The market rose 1% to its highest close since late February. Driving that rally were reports that Iran had reached out to the Trump administration despite a U.S. naval blockade of the Strait of Hormuz.
• The S&P 500 closed Friday at a new all-time high of 7,125. That is a 13.1% rally from the March low in under three weeks.
• If there is a single dataset that most clearly distinguishes a short-covering rally from a genuine bull-market resumption, it’s sector rotation.
• The macro backdrop hasn’t been cleared of all risk, as oil remains above $90 per barrel, inflation is sticky, and the Fed has no near-term rate cuts in the pipeline.
• With the market now rebalanced, we should see a broader advance next week. Markets are getting overbought, so rebalance risk as needed.

Market Brief – Stocks Surge On Opening Of Strait

The market didn’t just recover this week. It made new history.

Monday opened with the S&P 500 erasing all losses since the Iran war began. The

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