Stocks Complete Speedy Iran War Round Trip. The Next Leg of the Journey Awaits.

U.S. stocks completed a 600-point round trip this week—from pre-Iran war levels to the late-March lows—lifting the back to a fresh all-time high in what appears to be the fastest market rebound since the Covid pandemic. Stocks have powered nearly 10% higher over the past 10 trading sessions, according to data from Deutsche Bank, marking a faster pace of recovery than during last year’s Liberation Day recovery and largely matching a stretch of gains recorded during the spring of 2020. A host of factors combined to provide the boost, which now has the S&P 500 back to within striking distance of its late January peak, including hopes of an end to the seven-week war, slumping global crude prices a muted reading of wholesale inflation pressures, and progress in bringing Federal Reserve Chair nominee Kevin Warsh’s confirmation hearing to the Senate floor.