Markets Rally 2.5% on Middle East Ceasefire Confirmation
Markets cheered the off-ramp to Middle East escalation in the two-week ceasefire confirmed by Iranian officials last night, staging a rip-roaring rally led by cyclical sectors on Wednesday. Tech, Materials, Industrials, and Financials led the 2.5% S&P 500 charge while Energy fell as oil prices pushed back below $95 per barrel. Fixed income markets tension has eased as well as fears of global staflation abated, with the yield on the 10-year Treasury note slipping over 10 basis points below 4.25% early in the day before a bounce toward 4.3%. The CME FedWatch tool has also returned to discounting more FOMC easing this year with a near-certainty of at least one 25bps easing before year-end.In the opening hours of the evening session, the risk-on sentiment shift is largely being consolidated, with investors still understandably skittish about the possibility of renewed conflict amid headlines of accusations that Israel's ongoing campaign in Lebanon risks violation of the ceasefire. S&P e-minis are down a decimal and Nasdaq 100 is off by 0.2%, while May WTI Crude Oil is back above $97 per barrel.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -STAAR Surgicalup 19.5% after above-consensus Q1 pre-announcementRichardson Electronicsup 9.6%Resources Connectionup 4.3%ALSO HIGHER -Alcoaup 1.4% after being upgraded to Overweight at Morgan StanleyDOWN AFTER EARNINGS -Applied Digitaldown 4.3%Constellation Brandsdown 1.0%PriceSmartdown 0.1%ALSO LOWER -Aehr Test Systemsdown 3.9% after equity offering
