economy
Market guide: Where the S&P 500 may be headed, depending on how the Iran war goes
The stock market has struggled this month as investors worried that persistently high oil prices will drive up costs and dampen consumer spending.
TL;DR
- The S&P 500 has dropped more than 5% in March, with investors concerned about the U.S.-Iran war's effect on oil prices and consumer spending.
- UBS outlines three potential paths for the S&P 500: a rebound to 7,150 with a rapid resolution, a drop to 6,000 if disrupted until April, or a plunge to 5,350 with prolonged energy shortages.
- Asian markets are expected to suffer the most due to reliance on Persian Gulf energy, while European equities may also underperform the U.S.
- Recessions tend to be preceded by oil spikes due to their ripple effects throughout the economy.