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Why Stocks Are Breaking Free of Oil Crisis Tyranny

John Authers
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⚡ Quantum Brief
Geopolitical tensions escalated as ceasefire talks collapsed in the Persian Gulf, triggering a Strait of Hormuz blockade that sent oil prices surging early this week. The disruption renewed fears of energy market instability. US markets showed unexpected resilience despite the oil shock, with bullish momentum persisting amid broader economic optimism. Investors largely shrugged off the geopolitical risks, signaling confidence in sustained growth. First-quarter earnings reports disappointed, as Goldman Sachs and industrial giant Fastenal posted weak results, prompting sell-offs. The losses highlighted vulnerabilities in key sectors amid macroeconomic pressures. Late-week US-Iran negotiation progress eased tensions slightly, though details remained unclear. The diplomatic shift came too late to impact trading, leaving markets to digest the earlier volatility. The divergence between oil-driven volatility and stock market resilience suggests decoupling from traditional energy crisis impacts, potentially reshaping investor strategies in high-risk environments.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Resilience in the US suggests a strong appetite to carry on with the bull market.Momentum is barreling onward.Photographer: Charly Triballeau/AFP/Getty To get John Authers’ newsletter delivered directly to your inbox, sign up here. The week started with bad news to digest from the Persian Gulf on the breakdown in ceasefire talks and the Strait of Hormuz blockade, with oil prices rising sharply once more. First-quarter earnings season kicked off with some unpleasant surprises from Goldman Sachs and the industrial bellwether Fastenal, both of which sold off. A flurry of more positive headlines about offers in the US-Iran negotiations didn’t come until after the close.

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Source: Bloomberg Markets

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