Zaid Admani

and Iran are meeting in Pakistan this weekend.

So hopefully there's going to be more progress announced next week and this rally will keep going.

The speed of which the market bounced back is kind of insane.

We saw this happen with Liberation Day last year.

Same thing happened this time with the war.

The

The S&P has gone up around 7% in the last seven days, while the NASDAQ has gone up nearly 9%.

So the stock market took the stairs down during the war and then took the elevator right back up.

Now, let's hope the markets aren't celebrating too early because, you know, oil prices are still elevated, trading near $100 a barrel and gas is $4 a gallon at the pump.

Now, speaking of elevated gas prices, let's talk about inflation because this morning we got the March CPI report and inflation as expected came in pretty hot.

Consumer prices in March jumped 0.9% month over month, which is the biggest monthly jump since 2022 and annual inflation came in at 3.3%.

You're not a surprise here, but three quarters of that jump came from gas prices, which surged 21% in March.

But if you look at core inflation, which is what economists in the Federal Reserve tend to focus on because it strips out volatile prices like food and energy, core inflation was up 2.6% in March compared to a year ago.

Now that's still higher than the Fed's 2% target, but it's not too bad.

But look, this was just the first data point that we have on how the Iran war and higher oil prices are impacting the US economy.

Now, we'll have to see how long the effects of the higher prices linger on the economy, because the problem is that even if there's a peace deal announced tomorrow when the Strait of Hormuz is fully open, economists say that it could take months for prices to fully come back down.

Companies are quick to raise prices, but very slow to lower them.

We saw this happen during the supply chain crisis during COVID.

So there's a chance that higher energy prices impact inflation for weeks or even months.

And that could force the Fed to wait longer when it comes to interest rates.