Geopolitical events cause severe volatility but markets view them as temporary shocks. Historical 3-year annualized returns after such events average 13% with no negative periods since 1940.

Oil price spikes cause bond yields and dollar to jump, creating short-term inflation spikes, but Fed focuses on Core PCE excluding energy.

Midterm election years are worst in 4-year cycle, but S&P 500 has never had negative returns in 12 months following midterm elections, averaging 15% gains.

Weakness in labor market is good to prevent inflation; Friday's job losses partly from Kaiser strike (30,000). Economy fundamentally strong with low unemployment, reasonable inflation, strong earnings (Nvidia, Broadcom).