What the Failed Peace Talks Mean for Markets
What’s in Today’s Report:
- What the Failed Peace Talks Mean for Markets
- Weekly Market Preview: Dual Focus This Week on Iran but Also Key Bank Earnings
- Weekly Economic Cheat Sheet: Are Stagflation Risks Rising?
Futures are moderately lower as peace talks between the U.S. and Iran failed to produce a lasting ceasefire.
The ceasefire talks between the U.S. and Iran yielded no material progress and, in response, President Trump ordered a partial blockade of the Strait of Hormuz, which is boosting oil prices (up 8%) and weighing on futures.
Economically, there were no notable reports over the weekend.
Today focus will stay on the Strait of Hormuz and specifically if the partial blockade goes into effect and, if so, whether that reignites direct conflict (if so, that would be an incremental negative).
Outside of geopolitics, this is an important week for earnings as we get major banks reporting this week (among other notable companies) and that starts today via GS ($16.34), FAST ($0.30) and FBK ($1.13) results. In this environment, the stronger the earnings and guidance, the better for stocks.
Finally, there is one economic report today, Existing Home Sales (E: 4.07 million), but that shouldn’t move markets.
