Dow, S&P 500, Nasdaq Waver, oil prices benefit after reporting Iran’s missile strike targeting US air force bases
Wall Street is closely watching escalating tensions in the Middle East after President Trump confirms the US An astonishing strike has begun at Iran’s nuclear site Late Saturday, the country marked its official entry into the two-week-old conflict.
market It was almost stable In the aftermath of the escalation, US stock futures fell completely when traded on Sunday evening.
Furthermore, Bitcoin (BTC-USD) The price, which is often considered a risk appetite barometer, traded about $100,500 per coin, down more than 1.6%. wti crude oil (cl = f) and Brent (Bz = f) Futures jumped and traded barrels of $76 and $79 respectively. As uncertainty approaches Nevertheless, beyond the potential closure of the critical straits of Hormuz Continuing threats from Iran.
The latest surge continues with oil 3 consecutive weeks of profit on friday.
“I wouldn’t be surprised to see this risk-off response to US stocks and look closely at futures on Sunday evening and Monday morning,” wrote Lori Calvasina, head of US equity strategy research at RBC Capital Markets, in a Sunday night note.
“We continue to believe that the longer and wider the conflict, the more difficult it can be for US stocks,” Carbasina added. “These escalations come at a difficult time for US stocks as the S&P 500 is well valued from a basic perspective (probably a bit overvalued) and there’s more room to run from an emotional perspective.”
According to analysts, her three main concerns are: The first is the risk that increasing uncertainty in national security can put strain on stock valuations. Second, the possibility of renewing geopolitical tensions could hamper the recovery of emotions that began after the tariff drop in early April. And thirdly, the possibility Due to the sudden rise in crude oil priceswhich could promote inflation concerns.
Regarding sectors, energy (xle) While it is consumer discretion, it tends to outperform when oil prices rise (xly) and communication services (XLC), and, along with entertainment, media and interactive media, there is a tendency to lag behind the wider market, Carbacina noted.
City analyst Stuart Kaiser agreed to identify gross prices as a “channel for geopolitical risk channels to affect the stock market” with a sharply high oil price, and to identify gross prices as a key threshold for concern.
Kaiser added that the options market is currently priced at 10% chances of oil rising 20% from just 2.5% two weeks ago, reflecting the attachment of tail risk as conflict deepens.
Still, analysts pointed to stock resilience amid volatility, describing it as a “market that posts a risk-on week through extreme oil volatility and volatile geopolitical headlines.”