Wall Street Strategists Wrestle With War’s Toll on 2026 Outlook

A fragile Middle East ceasefire sent traders rushing back into risk assets this week. Yet Wall Street strategists warn that the war has already scarred inflation, energy supplies and the Federal Reserve’s ability to act — damage no truce can quickly undo.

That cast a shadow over the rallies that erupted across markets this week and sent the S&P 500 Index up 3.6%, its biggest jump since late November. Emerging-market equities surged, the dollar tracked oil lower, Treasury yields dipped and Bitcoin pushed back over $70,000.