Record US stock rally is under threat from a world in turmoil

February 19, 2024

By the halfway mark in the first quarter, the number of references to the Red Sea or “geopolitics” has almost matched the total for the previous three months. Any major threat to earnings, or signs that inflation is returning, could impact the months-long rally which has sent the US benchmark to record highs. A F/A-18E Super Hornet fighter jet is catapulted off the flight deck of the USS Dwight D. Eisenhower (CVN 69) aircraft carrier in Southern Red Sea, Middle East, February 13, 2024. Adidas AG said tension in the Red Sea is leading to higher supply costs in the short term. Medical equipment supplier ResMed Inc. said it’s seeing an impact on freight rates and lead times.