- Stocks and bonds started the week higher as diplomatic hopes around the Iran war pushed oil prices down for a fourth consecutive session, cutting inflation anxiety.
- The equity advance erased the S&P 500's decline for the month, with a renewed rally in chipmakers adding to sentiment.
- The physical oil market still looks tight beneath the price retreat, per Cavendish, which argues tight markets trump volatility.
- Schwab Asset Management CEO and CIO Omar Aguilar frames the next few weeks as driven by trade negotiations and the oil price path, with corporate and Treasury bonds preferred over high yield.
Quotes
“Stocks and bonds kicked off the week on a positive note as hopes for diplomatic efforts to end the war in Iran drove oil prices lower, easing inflation anxiety.”
“The advance in equities erased the S&P 500's decline for the month, with a renewed rally in chipmakers also buoying sentiment.”
“Oil prices fell for a fourth session in a row, as fears of a lasting supply shock in the Middle East continued to fade.”
“So clients at Schwab are constantly optimistic.”
“the volatility will be more related to trade-related activity and the potential impact on oil on both equities and bonds”