President Trump expressed surprise at the stock market’s resilience amid ongoing tensions in Iran, suggesting that both the Dow Jones Industrial Average and S&P 500 should have experienced a 20% decline. In a CNBC interview, he noted that oil prices, which he expected to soar to $200 a barrel, have instead stabilized around $90. Trump attributed this unexpected stability to shifts in supply sources, with boats redirecting to U.S. ports.
This commentary comes as the markets initially reacted negatively to the conflict but have since rebounded following a ceasefire announcement. The Dow is currently near its record high from early February, indicating a recovery that defies earlier expectations of a significant sell-off. Meanwhile, U.S. crude prices briefly surged above $112 before retreating, although gasoline prices remain elevated, underscoring ongoing inflationary pressures.
Market professionals should note that despite geopolitical risks, the current market resilience suggests a potential for continued stability, influencing trading strategies and portfolio management decisions.
Source: cnbc.com