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A U.S. strike on Iran wasn’t enough to rattle markets on Monday. Here’s what might change that. - MarketWatch

1. S&P 500 near 6,000 despite geopolitical tensions, signaling market resilience. 2. Current bullish trend tied to perceived U.S. strength against Iran. 3. Labor market shows signs of weakening, increasing risks for market downturn. 4. Investors seem overly optimistic about Iran's potential retaliation. 5. Expectations around upcoming trade deals remain unfulfilled, adding uncertainty.

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FAQ

Why Bullish?

Despite geopolitical tension, the S&P 500 remains stable and near key levels. Historically, markets often rebound after geopolitical scares, maintaining investor confidence.

How important is it?

The combination of geopolitical stability and uncertainty creates a mixed signal that could sway market sentiment, especially if labor market trends worsen.

Why Short Term?

Geopolitical tensions may cause immediate fluctuations, but the S&P likely stabilizes after initial volatility, similar to past events like the Gulf War.

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