MARKETS MAY BE UNDERPRICING A PROLONGED MIDDLE EAST WAR Investors may be underestimating the risk that the Middle East conflict lasts longer than expected. According to Bank of America strategist Antonio Gabriel, while a quick resolution is possible, the conflict extending into the second quarter is just as likely. Current U.S. stock valuations and expectations for the Federal Reserve suggest markets are not fully accounting for more disruptive outcomes for global growth. Meanwhile, money markets are already pricing in a full Fed rate cut by December, according to LSEG data.(*Walter Bloomberg)