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Markets rally briefly amid Middle East tensions and rising inflation risks.

Market News
12 Apr 2026
Seeking Alpha
View Source
Bearish
pluang ai news

Last week saw a strong market rally, with major indices like the S&P 500 and Nasdaq gaining over 3%, largely driven by a midweek surge. However, this rally is likely temporary due to ongoing Middle East conflicts and fragile ceasefire conditions that pose risks of renewed hostilities and disruptions in the Strait of Hormuz. Inflation remains high, with March's CPI rising 0.9% month-over-month, mainly due to energy costs affecting sectors like logistics and airlines. The prolonged conflict with Iran increases the chances of recession and stagflation, which markets have yet to fully price in.

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