Has the Stock Selloff Ended? Wall Street Sees Value but Remains Focused on Oil Markets.

U.S. stock futures suggested a solid rebound Monday following last week’s selloff that wiped out nearly all of the gains for the past six months as investors bet the U.S.-Iran conflict is nearing an end and the economy is sound enough to withstand the impact of surging crude prices. It’s a brave position to take, however, given that President Donald Trump himself has yet to articulate a convincing end-game strategy for the war, which is now entering its third week, and was compelled over the weekend to call upon allies and trading foes to join in support of a U.S. effort to police the Strait of Hormuz. The U.S. bombing of Kharg Island, Iran’s central crude export hub, may have cut off Tehran’s key source of funds, and reports said some non-U.S. affiliated tankers have started to squeeze through the Strait of Hormuz without threat of attack.