FOMO is what is driving stocks to new highs, Barclays says

Barclays says fear of missing out (FOMO) is the main driver lifting equity markets to fresh highs, with U.S. and technology sectors leading the rebound. Analyst Emmanuel Cau notes equities have shown resilience despite geopolitical risk, but warns markets may be pricing in excessive hope as oil prices and bond yields convey caution about the conflict’s endgame. Barclays prefers U.S. stocks over European peers, sticks with a “hold your nerves and hedges” approach, and flags that CTA and hedge fund de-risking — and subsequent short-covering — helped fuel the rally. The bank cautions further equity gains likely need confirmation from oil and rates that the situation is truly easing.