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Wall Street Hits Records as Executives Warn Investors Are Misreading War Risks

Investors are betting on a quick de‑escalation that may not arrive.

Overview

  • U.S. stocks set new highs this week, with the S&P 500 topping 7,000, as traders wager on a near‑term end to the Iran conflict and a rebound in oil shipments.
  • Big banks reported record or near‑record stock‑trading revenue after a volatile quarter drove heavy client activity across desks.
  • Consumer sentiment fell to 47.6 in the University of Michigan’s early April reading, the lowest on record, as higher gas prices strained budgets for many households.
  • Market leaders warned that investors are showing “rational complacency” about the war’s lasting hit to supply chains and inflation, urging caution on the rebound.
  • Regulators are reviewing unusual oil‑futures surges that appeared minutes before Trump’s Iran policy announcements, with the CFTC probing at least two such episodes.