Equity Markets Surge on Persian Gulf Ceasefire Progress While Bonds Lag

US equity indices have hit record highs for three consecutive sessions amid optimism over a potential ceasefire in the Persian Gulf. However, the municipal bond market continues to show signs of stress, reflecting a divergence in risk appetite.

• Nasdaq and S&P 500 achieved record closes for three straight days
• Ceasefire progress in the Persian Gulf is the primary catalyst for equity gains
• Muni bond ETF declined 1.61% from February 27 high
• Clear divergence between equity optimism and bond market caution