Wall Street investors doubt bet on de-escalation with Iran — MarketWatch
In the United States, Wall Street investors have begun to doubt the strategy of buying stocks after their decline, which was based on expectations of de-escalation between the United States and Iran. As MarketWatch reports, for almost the entire spring, market participants assumed that President Donald Trump would again shift to peace talks.
Oil prices and market indicators
Oil prices remain above $100 per barrel. The U.S. House of Representatives voted three times to end American involvement in Iran.
According to market data cited by the publication, oil traded at $101.09 per barrel, while the yield on 10-year U.S. government bonds stood at 4.937%. The Dow Jones, S&P 500 and Nasdaq indices were rising that day, while the VIX volatility index was declining.
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De-escalation indicator
A Wall Street indicator designed to track possible de-escalation between the United States and Iran issued a signal for the first time in several months. It was developed based on Signum Global's approach, under which Trump may abandon strikes on Tehran or return to ceasefire talks if oil prices rise and the stock market comes under pressure.
At the same time, investors are considering the possibility that this behavioral model may not work this time. MarketWatch notes that the absence of a sharp stock-market decline may reduce the U.S. president's incentive to pursue peace more actively.
