President Biden Weighs More Than $1B in New Arms for Israel, In Addition to Military Aid Bill Before the House
Portfolio Pulse from Charles Gross
The Biden administration is considering allocating over $1 billion in new arms for Israel, in addition to a military aid bill currently before the House. This move comes amid ongoing conflict in Gaza.
April 19, 2024 | 9:35 am
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NEUTRAL IMPACT
The decision to increase military aid to Israel is unlikely to have a direct short-term impact on the SPDR S&P 500 ETF Trust (SPY), given its broad exposure to the U.S. equity market.
The SPDR S&P 500 ETF Trust (SPY) is a broad-based ETF that mirrors the performance of the S&P 500. The decision to increase military aid to Israel is a geopolitical event that is unlikely to have a direct, material impact on the overall U.S. equity market or the diverse set of companies within the SPY portfolio in the short term.
CONFIDENCE 80
IMPORTANCE 10
RELEVANCE 20
NEUTRAL IMPACT
The geopolitical tensions surrounding the increased military aid to Israel could potentially influence oil prices, impacting the United States Oil Fund LP (USO) indirectly.
The United States Oil Fund LP (USO) tracks the daily price movements of West Texas Intermediate light, sweet crude oil. Geopolitical tensions, such as increased military aid to Israel, can lead to volatility in oil prices due to concerns over supply disruptions or increased conflict in the Middle East. However, the direct impact on USO is uncertain and would depend on broader market reactions and changes in oil supply and demand dynamics.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The potential increase in military aid to Israel could positively impact the iShares MSCI Israel ETF (EIS), reflecting increased defense spending.
The iShares MSCI Israel ETF (EIS), which tracks the investment results of a broad-based index composed of Israeli equities, could see a positive impact from increased U.S. military aid to Israel. This is because such aid could bolster the defense sector in Israel, potentially benefiting companies within the EIS portfolio.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80