The Stock Market Keeps Rising

Professionals are confounded

Economic Background

1. US hit debt ceiling of $31.4T on 19th Jan and has been using “extraordinary measures” to keep the government running.
2. The yield curve has inverted since 5th July 2022.
3. The Fed Target rate has risen from 0%-0.25% in Mar 2022 to 5%-5.25% today (20th May 2023).
4. The 1-month treasury yield is at 5.544% and 3-month treasury yield is at 5.273%.

Geopolitical Landscape

1. The US-proxy war with Russia that is happening in Ukraine is dragging much longer than expected and wasting lives, economic resources, and polluted the conflicted area (in no small thanks to UK for sending Depleted Uranium shells).
2. The US bombing of the Nordstream pipeline has caused energy cost to rise in Europe (especially Germany) and caused dirty fossil fuel to be used (import from physical shipping from the US) instead of cleaner and cheaper energy from Russia.
3. The rising tension around the Taiwan Strait caused by repeated US provocations via surrounding of China borders with US military bases and “diplomatic exchanges” between US officials and Taiwan officials.
4. The losing influence of the US dollar as a reserve currency and credibility due to the loss of the petrodollar status and the illegal thief of Russia’s assets.

Question: Why did the Stock Market in…