Overview
The joint airstrike resulted in the death of Iran's Supreme Leader, causing a significant shock to the global market, particularly in the energy sector. The disruption in the Strait of Hormuz and operational challenges at major Saudi oil facilities heightened concerns over oil supply, driving up oil prices. Although intraday oil prices saw a brief decline, they rebounded after Iran threatened to close the Strait of Hormuz. Additionally, the suspension of operations at Qatar's large LNG plants caused European natural gas prices to surge. During this turmoil, investors flocked to energy and defense stocks, while technology stocks with strong financials saw buying interest, mitigating earlier losses. In stark contrast, airlines and travel-related stocks plunged due to rising oil prices.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
President Trump, during a White House briefing, projected that this conflict could last 4 to 5 weeks and emphasized that all necessary measures would be taken. Economically, February saw U.S. manufacturing expansion, but input prices rose at the fastest rate since 2022, dampening expectations for Federal Reserve rate cuts. Market experts hold varying views on the Middle Eastern crisis. While JPMorgan sees potential buying opportunities due to strong macroeconomic fundamentals, RBC Capital warns against relying on historical patterns to predict stock performance post-conflict.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 20:35 | Speech by Fed's Williams |
| 20:45 | Speech by Fed's Kashkari |
General Opinion
Experts are divided on the market's structural weaknesses, with some suggesting that immediate impacts are manageable, while others warn of further oil price pressures if disruptions in the Strait of Hormuz persist. Investors are advised to remain cautious and monitor market developments closely.
