Wall Street's historic records are now giving way to a threat of correction. The brakes are also reaching Europe, and an ibex that is taking a break from its climb to the top.
The increases before and after the Fed’s 50-basis-point rate cut are fueling debate over the extent to which the market has already priced in the monetary stimulus. Analysts agree that the Fed’s determination to cut rates is helping to dampen warnings of a recession. But they also warn that this stock market escalation is occurring in tandem with another escalation, geopolitical tensions in the Middle East.
THE Israeli attacks on Lebanon They are increasing the fear of an extension of the armed conflict started with Hamas. Hezbollah has already warned that the latest Israeli attacks have crossed red lines and that the level of tension is increasing in a particularly sensitive area like the Middle East.
War warnings in the region have resulted in a rise in the price of oil. Last week, it reached a low of $68. Yesterday, it exceeded $75, also encouraged by the rebound in demand for crude oil that could lead to a cut in Fed rates. The barrel of Brent stops its rise and consolidates near $75. The barrel of West Texas type, the reference in the United States, is close to $72.
Ibex 35
Next expansion.