Donald Trump announced a two-week ceasefire with Iran, sparking the bullish momentum in the stock market. U.S. stock futures jumped about 2% following the news in after-hours trading.
The truce triggered a dramatic shift in investor sentiment from “risk-off” to “risk-on” trade. Growth ETFs generally outperform when the stock market rises and risk appetite increases.
Risky Bets Surge
The reopening of the Strait of Hormuz has brought relief after a month of turmoil. Investors are expected to rotate into beaten-down, high-growth areas like technology, which were at the heart of the recent sell-off amid the Middle East tensions. A drop in Treasury yields and a decline in oil prices have renewed interest in riskier growth assets. The 2-year yields dropped 7 …
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