Wall Street veteran Ed Yardeni says investors are shifting focus away from the Middle East conflict and returning to traditional market fundamentals. The veteran strategist, known for his work at Yardeni Research, observed that equity markets are responding more to corporate earnings, valuations, and economic data than to geopolitical tensions in the region.

This represents a notable shift from earlier in the conflict, when investors briefly pulled back amid uncertainty over how the war might spread and impact global energy markets. The renewed focus on fundamentals suggests confidence that Middle East tensions will remain contained and not significantly disrupt global supply chains or broader economic growth.

The change in sentiment reflects broader market resilience, with major indices recovering from earlier lows. Investors appear to be betting that central bank policy and corporate profitability will drive returns rather than geopolitical developments. This fundamental-driven approach could support continued equity gains if earnings remain solid and economic data cooperates.