US stocks fell on Friday after Israel's attack on Iran and Iran's retaliation shook global markets, pushing oil prices to their highest level since January. The Dow Jones Industrial Average (^DJI) tumbled nearly 1.8%, or almost 800 points, as investors steadily fled riskier assets. The S&P 500 (^GSPC) dropped about 1.1%, while the tech-heavy Nasdaq Composite (^IXIC) fell 1.3%.
The major averages sank to a session low in the afternoon after Israeli defense forces said dozens of Iranian missiles were launched at Israel and "all of Israel is under fire." Iran called Israel's strike a "declaration of war."
There's a (not so) good reason for this. The markets thrive on stability - and earnings - and nothing more. Whether or not Iran can sell oil in to the world market isn't even a consideration in this move - it's not a major player by any means. It's just that markets react to whay MAY happen in the futures, and this action doesn't bode well for the near term. Has nothing to do with anyting that's actually happening on the ground - or in the air as it were...
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ReplyDeleteGlad I bought my mower gas yesterday.
ReplyDeleteStock Market: Yawn. Fake hysteria, badly reported and overhyped. Remember 1987? Stock market lost 23%, about 500 points, on Oct 19. Today, 500 points is a bit over 1%, but a 200 point drop gets all this racket. Sure, the market is a short term reactor to current news; it always has been. If you are an investor you are looking at 10 year trends, not 90 day wonders.
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