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https://www.theguardian.com/business/ng-interactive/2026/may/14/us-stock-market-war-inflation-tariffs-trump>
"It was a dark Friday for Wall Street on 27 March. Oil prices were climbing and
the war with Iran raged on. Markets responded accordingly, with the Dow and
Nasdaq entering correction territory, falling more than 10% below their peak,
after a month of selloffs.
Fast forward seven weeks later to 13 May, and the situation in Iran only looked
marginally better. Oil prices were high, and the strait of Hormuz was still
closed. Peace talks with Iran seemed tenuous, even with the pressures of high
gas prices. Donald Trump on Wednesday said he was “not even a little bit”
motivated by Americans’ financial situation to end the war.
And yet, stock markets have not only recovered from their losses – they are
thriving.
Even before the start of the war, the US stock market proved incredibly
resilient to political and economic instability. The market has shrugged off
the Covid-19 recession and generational-high inflation, absorbed Russia’s
invasion of Ukraine and increasingly turned a blind eye to Trump’s tariff
spats. Everyday Americans continue to struggle with an affordability crisis and
consumer confidence has crashed, but the markets just keep going up and up.
Yes, Wall Street still has its down days. But the tech-heavy Nasdaq index has
continued to surge amid continued investment in AI. The index has gone up 11%
since the start of the year – nearly half of the gains that it saw last year.
The Dow and S&P 500 continue to bump close to record highs.
Each time investors shake off the latest shock and reach new highs, questions
arise: what is driving this phenomenon, and how long can this bull market
last?"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
