Don't Ignore This Powerful Historical Precedent

Markets anticipate conflict resolution in the Strait of Hormuz, easing inflation fears and supporting a pause in Fed rate hikes. Tech sector valuations have normalized with the broader market due to strong Q2 earnings, reducing risk and improving sector attractiveness. Recent economic data, including ADP payrolls and ISM services PMI, suggest steady 2% trend growth and manageable inflation pressures. Rare S&P 500 V-shaped reversal historically signals high probability of continued bull market and economic expansion into 2027.

Yesterday, stocks took a breather after a record four-day run. Any further progress on lowering oil prices and easing bond yields across the curve is going to require an official reopening of the Strait of Hormuz agreed to by all parties involved.