The scholarship has its moods, but sometimes it is particularly concerned. And this Friday he won worried about everything else. The Israeli strike against Iran was enough for the world markets to cause immediate shock, which reminded everyone that the tracks were never completely disconnected from the sound of bombs. In New York, Dow Jones fell by more than 600 points. A brutal collapse that owes nothing chance, but all geopolitics. In this unstable equation, volatility has again become the standard and scholarship resonant fund of the real world.
In short
- Dow Jones will throw more than 600 points on the Israeli strike against Iran.
- Oil prices fly by more than 8 %and revive inflationary concerns.
- Technological values decrease, while energy and defense are doing well.
A geopolitical shock that reverse the trend
Waking up was brutal on Wall Street. While the markets showed fragile optimism, supported by technical recovery in early May, the scholarship forcibly redness. Recorded: Israeli strike against Iran, unexpected, but heavy with consequences.
Dow Jones, a historical thermometer of the US economy, lost more than 600 points or almost 1.4 %in a few hours. Flash fall that reveals the climate of the maximum uncertainty that now weighs investors.
The scholarship, so often during geopolitical shock, played its role as a seismograph. This time, however, the epicenter is neither economic nor monetary: it is an army. The spectrum of hugs in the Middle East was enough to brutally reconfigurate strategies. The technological values, at the head of the spring reflection, were sacrificed for the first time. Tesla and Nvidia, still locomotives from Nasdaq, have seen their profits like snow in the sun.
This reaction is not emotional: it is defensive. The portfolio managers have reduced their exposure to the asset considered to be the risk to move to the values of refuge, such as gold, or in traditionally bull sectors at the time of conflict, such as energy or defense.
Energy and Defense: Panic winners on stock market
If red dominated on the screens, some saw the ignited curves. Oil, first. The term contract for raw Brent and WTI jumped by more than 8 %, which bordered with $ 74 per barrel. Violent increase, directly supported by fear of blocking supplier roads in the case of military climbing.
In this process, energy values increased. Exxonmobil and Chevron gained more than 2 % and 1 %. Classic market reflex in a period of potential oil crisis, but also a signal: energy becomes the main strategic problem, far beyond the simple logic of return.
Another sector in the Eferverescence: Defense. Lockheed Martin, a giant armory, jumped approximately 3 %. Military tensions reactivate the expectations of increased defense budgets, especially in the United States and their allies. Investors understood this: in the world again, unstable, the industry of the armament becomes a refugee value in itself.
The pressure market, the foggy future
The reaction of markets to the Israeli strike is all the more important because it interferes with the already tense context. Permanent inflation, questions about future Fed decisions, Chinese slowdown … The scholarship did not need a new front. And yet it has one, especially explosive.
Mark Malek, the director of investment in Siebert Financial, summarizes the surrounding state of the mind: “This conflict adds challenges to such considerable concerns that keep the markets; will not disappear and increase the inflation impact of oil: any prolonged increase in energy prices could make the fed to review its monetary strategy.
On the political side, the muscle intervention of Donald Trump on social truth, it increases confusion. The former president through his ultimatum towards Iran and his challenges to negotiate hot and cold. Enough to make short -term prospects for markets and highlight a decline in Solana and dogecoin.
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Evariste, fascinated by Bitcoin since 2017, has not stopped documenting on this topic. If his first interest focused on trading, he now tries to actively understand all cryptocurrency progress. As an editor, he tries to permanently provide high quality work that reflects the condition of the sector as a whole.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.
