The RSM US Financial Conditions Index implies an economy with a modest tailwind as news of an extended ceasefire and the upcoming reopening of the Strait of Hormuz bolstered equity prices on Monday.
The S&P 500 index increased by1.7% and the Nasdaq rose by 3%.
Our RSM US Financial Conditions Index stands at 0.8 standard deviations above normal with room to improve in the second half of the year as a new round of IPOs work their way to the market on back of the record SpaceX offering.
Equity market volatility has receded in recent weeks to below its long-term average all of which is building a bullish case for improved valuations as the economic expansion rolls on despite recent disruptions to global oil and energy markets.




