Raymond James Investment Management·2026-04-29·via All Articles on Seeking Alpha
Summary
The war in the Middle East pushed energy prices higher and added to inflation concerns.
The fundamental backdrop was constructive coming into 2026, but elevated valuations and a dangerous geopolitical shock created sharp swings in market leadership and risk appetite.
Given the Trump administration's expected duration of the hostilities, we are surprised US equity markets have not declined further.
Guido Mieth/DigitalVision via Getty Images
Market Overview
US equity markets were volatile in the first quarter of 2026, as investors weighed still-solid corporate earnings expectations and ongoing artificial intelligence (AI) infrastructure spending against a more complicated geopolitical backdrop. Market leadership broadened early in
