Global markets oscillate between geopolitical euphoria and reality checks as ceasefire hopes clash with Middle East tensions. The S&P 500 surged to record highs, up 4.1% year-to-date, while the Nasdaq rallied 5.28%, but narrow breadth reveals heavy reliance on mega-cap tech. Iran's blockade of the Strait of Hormuz reignited oil price volatility concerns, contradicting premature assumptions that geopolitical risk premiums had disappeared. Extreme overbought readings across major indices suggest markets may have overextended ahead of inevitable headline reversals. Europe's STOXX 600 gained 1.91%, though the IMF warned of potential major energy crisis risks from Middle East conflict. Japan's Nikkei hit all-time highs despite central bank paralysis on rate decisions.
