Stocks rise on Iran ceasefire as oil surges 11 percent, Michael A. Gayed notes

Stocks rise on Iran ceasefire as oil surges 11 percent, Michael A. Gayed notes
Stocks jump, oil surges 11 percent

Stocks rallied 3 percent at the start of the week on headlines related to a potential Iran ceasefire, according to Michael A. Gayed.

By Thursday, the outlook shifted as former President Trump pledged to escalate strikes, resulting in oil prices surging 11 percent—the biggest single-day move for oil since 2020. Despite snapping a five-week losing streak, Gayed highlighted significant dispersion within sectors, with energy shares falling 4 percent during the same week that technology companies posted gains.

Earlier in the month, Gayed observed that the Russell 2000 index declined over 4 percent in a week as risks grew for small-cap stocks. He also estimated that only 8 to 12 percent of the total yen carry trade has unwound, leaving a large structural position in place. These previous calls highlight Gayed’s ongoing focus on market dispersion and macro flows.

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