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Maroc Maroc - WN.COM - Business - 04/May 19:40

Traders grapple with two-sided tail risk as stocks regain highs

With equities back to their highs after a V-shaped recovery from the Iran oil shock, investors are increasingly caught between left and right tail risks: The tireless AI and semiconductor rally on one side and the gradual drag from higher energy prices on the other. Last week’s megacap tech earnings and Federal Reserve meeting did little to tamp down investor enthusiasm in the US. Meanwhile, the ongoing Iran conflict has oil prices climbing again, raising the specter of inflation and higher interest rates, especially in Europe. That’s keeping options volatility in the region relatively high. “Markets are once again trying to look through the oil shock,” Florian Ielpo, head of macro at...

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