The Federal Reserve's Nightmare Scenario Is Taking Shape and the Stock Market Should Pay Attention

A pullback driven by the Iran conflict has interrupted the multi-year U.S. equity uptrend that began in 2019, following prior drawdowns in the COVID crash and the 2022 bear market. The development is prompting risk-off positioning and higher market volatility, with potential cross-market effects including energy and broader equity flows.

Analysis

A pullback driven by the Iran conflict has interrupted the multi-year U.S. equity uptrend that began in 2019, following prior drawdowns in the COVID crash and the 2022 bear market. The development is prompting risk-off positioning and higher market volatility, with potential cross-market effects including energy and broader equity flows.