Back to those other bricks

Markets are treating the closure of the Strait of Hormuz and elevated oil prices as a serious but manageable shock, with investors increasingly assuming the conflict will de-escalate rather than spread. That view supports a constructive stance on equities, especially as US growth data remain resilient and inflation appears contained enough to keep Fed rate cuts in play.

The next focus is likely to shift back to familiar risks, including private credit stress, AI disruption in software, and whether heavy hyperscaler spending can eventually earn attractive returns. Bank commentary so far suggests private credit remains contained, while software may stay under pressure until earnings and guidance improve. Overall, the message is that this bull market still has room to run, but volatility could return if energy markets worsen or if earnings guidance weakens.