The Biggest Reason Behind the Pullback
What’s in Today’s Report:
- The Biggest Reason Behind the Pullback
- Weekly Market Preview: Ceasefire hopes and the Fed (It’s Potentially a Critical Week)
- Weekly Economic Cheat Sheet: Fed Decision on Wednesday is the Key
Futures are moderately lower on a rebound in oil prices as tensions in the Gulf worsened over the weekend.
The Gulf states/Iran meeting about Hormuz, which was the main catalyst for Friday’s rally, was postponed while the Houthis continued to seize land on the Red Sea coast and the Saudi East-West pipeline was shut due to damage.
All three events are raising concerns about the supply of oil exiting the Persian Gulf and oil is 2% higher as a result.
Today there are no notable economic reports nor any Fed speakers so focus will stay on geopolitics. Any hints of progress towards a ceasefire (including scheduling meetings) will be an immediate positive, while any reports of further fighting will push oil and Treasury yields higher and stocks lower.
