Iran Attacks Israel With Missiles, Middle East Tensions Escalate: S&P 500, Stocks, Bitcoin Fall As Oil, Gold Rise
Portfolio Pulse from Chris Katje
Iran launched a missile attack on Israel, escalating Middle East tensions. This has led to a rise in oil and gold prices, while the S&P 500, Dow Jones, Nasdaq, and Bitcoin have fallen. The US is increasing its military presence in the region.
October 01, 2024 | 5:51 pm
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POSITIVE IMPACT
The SPDR Gold Trust (GLD) increased by 1% to $245.99 as investors flocked to gold, a traditional safe-haven asset, amid rising geopolitical tensions.
Gold is traditionally seen as a safe-haven asset during times of geopolitical instability, leading to increased demand and higher prices.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The United States Oil Fund (USO) rose 4% to $72.39 following Iran's missile attack on Israel, as oil prices spiked due to increased Middle East tensions.
The geopolitical tension in the Middle East often leads to a rise in oil prices due to concerns over supply disruptions. This directly benefits oil-related ETFs like USO.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR Dow Jones Industrial Average ETF (DIA) decreased by 1% to $420.59 as investors reacted to increased geopolitical risks.
Increased geopolitical risks lead to market uncertainty, negatively impacting major indices like the Dow Jones.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) dropped 2% to $479.22, with technology stocks hit hardest by the market reaction to the Middle East tensions.
Technology stocks are often more volatile and sensitive to geopolitical risks, leading to a sharper decline in the Nasdaq-tracking QQQ ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 1% to $567.35 as market uncertainty increased following the missile attack, despite recent all-time highs.
Geopolitical tensions often lead to market volatility and a flight to safety, causing broad market indices like the S&P 500 to decline.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 75