Yesterday sent a clear warning shot to US Traders: even a positive CPI report—arguably the Fed’s primary concern—failed to hold the bid.
Indexes finished in the red, leaving sell-the-news hints.
And that hesitation is materializing into a full-blown pullback in today’s session.
Nasdaq is leading US Indexes in their fall, down 1.50% as I write this.
After the relentless Freedom Rallies across equities last week, the market shrugged off everything, including the unprecedented investigation into Chair Powell.
However, the escalating tensions in Iran are now being used as the pretext for a significant selloff in equities.
On paper, the past week rally made perfect sense: record low credit spreads, record high bond issuance (signaling robust economic confidence), and solid earnings from early reporters all supported the bull case.
But the tone has shifted.
With Oil bouncing above $62—up 10% since the Maduro capture—volatility has returned, and it is rarely an investor’s best friend.
As JP Morgan’s Jamie Dimon noted, geopolitical risk remains the single biggest headwind for equities across asset classes.
This focus naturally overshadows Black Swan risks, such as potential credit distress or fears of an AI peak – Keep a close eye on those throughout 2026.
