Full-scale war crisis between the US and Iran emerges, New York stock market ends with volatility

Amid reports of a full-scale war between the United States and Iran and increasing uncertainty, the three major U.S. stock indices closed with mixed gains and losses, supported by bargain hunting. The Dow Jones Industrial Average slightly declined, while the S&P 500 and Nasdaq Composite maintained an upward trend.

Over the weekend, the U.S. launched strikes on key Iranian military facilities, turning war into a reality and significantly impacting investor sentiment. In the early stages of the conflict, major indices opened lower due to increased risk aversion, but investors quickly viewed the war as a constant (an ongoing variable) and began buying on dips, limiting the market’s decline.

Some investors interpret that if Iran’s leadership suffers significant losses initially, it could reduce uncertainty and bring markets back. However, concerns about a blockade of the Strait of Hormuz disrupting oil supplies remain, which could exert long-term pressure on the markets.

With rising oil prices and inflationary pressures, sectors like energy performed strongly and drew attention. Conversely, consumer goods and healthcare sectors failed to escape declines. Defense-related companies responded to the war news with stock price increases.

In the future, stock market volatility may increase with the progression of the Iran conflict and rising international oil prices. If the war becomes prolonged or oil prices continue to rise, it could have a greater overall economic impact and put pressure on the stock and bond markets. Experts advise adopting a cautious investment strategy under these circumstances.