Worldwide stock market rollercoaster follows ceasefire in Iran
April 9
The stock market has been unsteady since the start of the U.S. war in Iran. But following the announcement of a temporary two-week ceasefire earlier this week, worldwide stock markets soared.
The S&P 500 leaped 2.5% on Wednesday, the Dow Jones Industrial Average soared 1,325 points, and the Nasdaq composite railed 2.8%.
Arizona brokerage agency, EverVest, specializes in financial planning.
Jay Spector, Co-CEO and Founding Partner of EverVest, joined “Arizona Horizon” to discuss the changes.
“The volatility is incredible,” Spector said, “…it’s completely being driven by this geopolitical event that’s going on in the Middle East. That’s what we’re seeing, and the market is swinging both up and down based on what we are seeing coming out of the war zone.”
Spector explained how the lag with gas prices correlates to oil prices spiking because of the closure of the Strait of Hormuz, where 20% of the world’s crude oil comes from.
“You’re only seeing primarily dry cargo, tankers, and freighters going through the state, not the more volatile crude in other chemicals that could be attacked and cause issues,” Spector discussed, “…we’re still not seeing relief on the crude oil part, which then would translate into relief at the pump for consumers.”
According to Spector, the markets have been moving on the hope that there will be a long-term ceasefire deal.
“As soon as there is some detrimental information,” Spector said, “…you are seeing the market react to that. It is being very reactionary. This is not an economic issue that we’re seeing in the markets. This is geopolitical tensions that are driving the day-to-day action in the market.”
Spector emphasized that investors need to be concerned with their long-term plan, instead of focusing on the short-term global economic war impact on what’s happening in the market.
