<div id="readability-page-1"><h2>FUNDAMENTAL OVERVIEW</h2><p>The S&amp;P 500 has been printing record highs almost daily despite the prolonged US-Iran stalemate and the Strait of Hormuz closure. The rally in April was justified by easing US-Iran tensions, the constant push for a diplomatic resolution instead of another full-fledged war and expectations that a deal would be reached eventually.</p><p>Now, we are approaching an inflection point… </p><p>In fact, it wasn’t just the US-Iran de-escalation supporting the stock market, but also the Federal Reserve’s easing bias (the only major central bank to keep that). This has led to an easing in financial conditions even without rate cuts. Real interest rates have been falling, with the 1-year real rate being close to turning negative. </p><p>There are two main risks ahead: the restart of US-Iran war and a hawkish Fed. We've been getting reports that Trump is now considering a resumption of the war more seriously as the ceasefire holds on &#34;life support&#34; after a &#34;garbage&#34; Iran's peace proposal. Now, this might just be the usual hawkish rhetoric without substance, but it’s still something to keep an eye on.</p><p>If we do get an official resolution, the reopening of the Strait could give the stock market another boost in the short-term as oil prices will likely fall and rate cut bets will increase. After that though, the focus will quickly turn back to the Fed and the economic data. </p><p>With the end of the war and the reopening of the Strait of Hormuz, the increase in economic activity could keep inflation higher for longer and eventually require rate hikes. There’s also another scenario where the Strait remains closed for longer and oil prices stay elevated, with the risk that the Fed turns hawkish anyway. </p><h2>S&amp;P 500 TECHNICAL ANALYSIS – DAILY TIMEFRAME</h2><p>On the daily chart, we can see the S&amp;P 500 continues to extend into new all-time highs almost daily. The only significant support zone we have is the one around the 7,200 level. If we get a pullback into it, we can expect the buyers to step in there with a defined risk below the support to keep pushing into new highs. The sellers, on the other hand, will want to see the price breaking lower to extend the pullback into the 7,050 level next.</p><h2>S&amp;P 500 TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</h2><p>On the 4 hour chart, we have an upward trendline defining the bullish momentum. The buyers leant on the trendline yesterday to keep pushing into new all-time highs, and we can expect them to continue to do so. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 7,200 support next. </p><h2>S&amp;P 500 TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</h2><p>On the 1 hour chart, there’s not much we can add as from a risk management perspective, the buyers will have a better risk to reward setup around the trendline to target new highs, while the sellers will need a break lower to open the door for new lows. The red lines define the average daily range for today.</p><h2>UPCOMING CATALYSTS</h2><p>Today we have the US PPI report and Trump-Xi meeting. Tomorrow, we get the US Retail Sales report and the latest US Jobless Claims figures.</p></div>

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<p>The S&P 500 continues to reach record highs, driven by easing US-Iran tensions and the Federal Reserve's easing bias. However, risks loom with potential US-Iran conflict and a hawkish Fed stance. Upcoming economic reports, including US PPI and Retail Sales, may influence market direction. Technical analysis shows bullish momentum, with key support around 7,200. A resolution in the US-Iran situation could further boost the market, while prolonged tensions may keep oil prices high and pressure the Fed to act.</p>

- The S&P 500 is reaching record highs, supported by easing US-Iran tensions and the Federal Reserve’s dovish stance.  
- Future risks include potential US-Iran conflict resurgence and a hawkish Fed affecting financial conditions.  
- Important upcoming data releases include the US PPI report and the US Retail Sales figures, which may influence market trends.

The S&P 500 continues its record run, but an inflection point might be near