Why are stocks at record highs with no Iran resolution?

J.P. Morgan Asset Management

Kriti Gupta, Justin Biemann

Article

12 Pages

J.P. Morgan Private Bank argues that stocks are rebounding because investors are focusing more on earnings resilience than unresolved Iran conflict risk. The S&P 500 recovered in just 11 trading sessions, while 83% of early reporters beat earnings estimates.

Key Takeaways

Recovery Was Fast: The S&P 500 recovered from a nearly 10% drawdown in 11 trading sessions.
Earnings Stayed Firm: About 83% of S&P 500 companies beat earnings estimates, above the 78% five-year average.
Regional Gaps Persist: Emerging markets gained 13.8%, while Europe rose 6.6% and Japan gained 5.7%.
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