economy
The clock is ticking for the stock market as the Iran war stretches into a fourth week
Stocks have been largely calm since the start of the U.S. war in Iran, but the latest headlines could signal a turn for the worse.
TL;DR
- The stock market has been calm since the U.S. war in Iran began, but recent reports suggest a potential for a longer conflict.
- Pentagon is reportedly deploying thousands of additional Marines and warships to the Middle East.
- White House is considering plans to occupy Kharg Island to reopen the Strait of Hormuz.
- Experts warn that a prolonged war could lead to a recession and a stock market drop of at least 20%.
- Investor complacency exists, with some believing President Trump might de-escalate due to political and market pressures.
- Oil prices have surged approximately 50% since the start of the Iran war, impacting consumer demand and increasing recession risk.
- The S&P 500 recently closed below its 200-day moving average, a long-term technical indicator.
- If the S&P 500 fails to hold its 200-day moving average, the next support levels are estimated between 6,000 and 6,200.