Source: Radio New Zealand
Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading on April 17, 2026 in New York City. MICHAEL M. SANTIAGO / AFP
A leading economist says investors are expecting a change in the Middle East conflict, as the New York Stock Exchange reaches record highs.
A number of indices on Wall Street have surged on Friday (Saturday NZT), including the S&P 500, which closed at over 7100 for the first time.
The Nasdaq also had its longest positive daily streak since 1992.
It comes after the announcement of a US-backed ceasefire between Israel and Lebanon earlier this week.
Iranian Foreign Minister Abbas Araqchi said the Strait of Hormuz was also set to be opened following the ceasefire agreement, although the long-term opening is still uncertain.
Infometrics principal economist Brad Olsen said markets have recovered all losses they experienced since the start of the Iran war.
Infometrics principal economist Brad Olsen. File photo. RNZ / Samuel Rillstone
“That means for that, for the likes of Kiwis looking at their KiwiSaver and similar, their earnings are starting to look a whole lot better as everyone, markets, investors, start to expect better things out of the Middle East after some pretty chaotic times,” he said.
“Investors are looking strongly at expectations that conflict seems to be moving much more away from war, and into a lot more ceasefire, and hopefully much calmer conditions.”
There was still volatility in the market, he said.
“The markets have been very trigger-happy at looking for any good news and absolutely leaping on it.”
Olsen said better tones were coming through, and if better expectations continued, further growth could be on the cards.
“We’ve always been watching immediate announcements and seeing, often, quite strong positive market reaction to better expectations from the Middle East, sometimes only to have those pared back within hours as something else adjusts.
“I think there is a little bit of overly-strong optimism coming from the markets, I think most people will be a little bit sceptical of just how strong and forthright the market reaction has been.”
Olsen said while numbers had improved, he would not be surprised to see some volatility in the markets over the coming days, with hopefully a more optimistic tone overall on the horizon.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
