Over the past month or so, every time negative news came out such as the Houthis firing missiles toward Israel, markets fell, while they rose on positive news. However, right after that since the beginning of April, they bounced initially on "old news" about diplomacy and negotiations.
If that is not strange for you, say it was still considered a positive development despite being a rehash of previous information, events and rhetorics since then have worsened, to the level of bombing universities, Trump threatening to destroy an entire civilization, Iran cutting off direct communications & possibly retaliating beyond the region, and imminent oil depletion in certain countries (although OPEC countries may up their production).
Yet markets kept recovering. Price movements are often attributed to news or "surprises". Except when they suddenly stop explaining anything. Does this mean the worst is over already (despite many Redditors claiming the worst has not been priced in)? If so how or why would investors, after seeing the markets drop right after the Houthis fired missiles, know to start buying back in?
[Chart of CLF EXUS and SPX](https://imgur.com/a/Jp2XlMl)
Note to mods/bots: My last post was removed so I'm now trying to put in "more effort" and avoid "certain keywords" (I never use offensive words so that sounds like a mystery to me).
