economy
Wall Street thinks there's more downside to go as a new risk emerges in April
With major headline risks, many doubt the market has hit its lows amid the U.S.-Iran war. But Barclays thinks the selling will look different from here.
TL;DR
- Stocks rallied early in the week following "productive" conversations between President Trump and Iran, but selling resumed later.
- Analysts like Rob Ginsberg and Katie Stockton believe the market has not yet hit its lows, citing downside momentum and uncertainty.
- The Nasdaq Composite and Dow Jones Industrial Average entered correction territory, with major indices posting their fifth consecutive weekly decline.
- Headline risk from potential U.S.-Iran conflict escalation or de-escalation is a key driver of market uncertainty.
- Barclays suggests the "shock phase" of the war is over and any further selling may be less violent, driven by economic data.
- Economic data, particularly regarding inflation and growth, is expected to influence further market movements.
- Some analysts believe the U.S. economy is better positioned to handle an oil shock compared to the past.
- Investors are focusing on future economic data (3-6 months out) and the duration of the U.S.-Iran conflict.