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Stock markets rise despite Middle East tensions and high oil prices, driven by expanding corporate profit margins.

Market News
05 May 2026
Seeking Alpha
View Source
Neutral
pluang ai news

Despite ongoing geopolitical tensions in the Middle East and oil prices remaining elevated at $105 per barrel, stock markets showed strong performance last month. This positive market trend is largely due to rising corporate profit margins, with companies now earning about 11 cents per dollar of sales compared to just 5.5 cents in the 1970s and 1980s. The situation highlights how markets can remain resilient even amid global uncertainties. Investors should watch how these profit margins and geopolitical developments evolve moving forward.

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