economy
March 2, 2026
How traders played Monday's comeback, and what they think will keep working during the turmoil
Monday's trading action showed the historical precedent around geopolitical shocks holds true, and hinted at what investments could continue to work.
TL;DR
- The Nasdaq Composite reversed an earlier slide, while the Dow Jones and S&P 500 also recovered from their lows.
- Historically, the stock market tends to price in the worst-case scenario of geopolitical conflicts early and then recover.
- The impact on the stock market depends on the duration of the U.S.-Iran conflict and potential disruptions to oil passage or energy facilities.
- Gold is recommended as a safe-haven asset that may see further boosts towards all-time highs.
- Energy stocks' outlook is complicated, with potential price volatility depending on the conflict's severity.
- Defense stocks benefited initially, but a prolonged conflict could have mixed long-term implications.
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