Stocks Edge Up Despite Rising Tensions
Markets shrugged off geopolitical worries Monday, with major U.S. indices ticking higher even as tensions flared between the U.S. and Iran. The Dow climbed 270 points—call it 0.7% if you prefer percentages—while the S&P 500 and Nasdaq followed suit, up 0.69% and 0.78% respectively. Growth stocks, especially in tech, led the charge. Oddly enough, oil prices slid about 5%, which doesn’t exactly scream “crisis.”
Maybe the muted reaction stems from timing. The U.S. strikes on Iranian nuclear facilities happened over the weekend when markets were closed. By Monday, traders had already absorbed the news. Or perhaps it’s because Iran’s retaliatory strike on a U.S. base in Qatar—confirmed by Qatar’s foreign ministry—didn’t result in casualties. The U.S. had evacuated personnel days earlier.
Still, it’s a strange calm. The Strait of Hormuz, a critical oil chokepoint, could’ve been a flashpoint. Iran had hinted at shutting it down. But oil barely budged. Maybe traders think cooler heads will prevail. Or maybe they’re just numb to brinkmanship by now.
Trump’s Bluster and the Fog of War
President Trump called the U.S. strikes a “spectacular military success,” though independent observers haven’t found evidence of significant damage—no elevated radiation levels, for instance. Then again, these things aren’t always immediate.
Trump didn’t stop there. He floated regime change, suggesting Iran’s leadership could be replaced by a “democratic government.” Strong words, but it’s unclear whether the U.S. is ready for all-out war. Iran’s response—measured so far—hints they might not be either.
Tech Stocks Defy the Noise
Tesla surged nearly 10% after unveiling its Robotaxi service, though the rollout wasn’t flawless. Reports of speeding and traffic violations trickled in—hardly shocking for a beta test, but enough to raise eyebrows.
Other growth stocks rode the wave too. It’s as if investors decided, for a day at least, that earnings matter more than missiles. Whether that logic holds is another question. If tensions escalate, sentiment could flip fast.
For now, though, the market’s betting on de-escalation. Or maybe it’s just distracted. Either way, the numbers don’t lie: stocks inched up, oil dipped, and nobody panicked. At least not yet.
