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Israel’s attack on Iran shattered stocks’ early-summer calm. Here’s what investors should watch out for next. - MarketWatch

1. S&P 500 dropped 1.1% amid geopolitical tensions with Iran. 2. U.S. crude prices surged over 7%, impacting inflation concerns. 3. Market reaction was muted as investors expected the conflict. 4. Volatility in S&P 500 is at its lowest since December. 5. Weak labor market data raises fears of recession.

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FAQ

Why Bearish?

Geopolitical instability can cause uncertainty, leading to sell-offs. Historically, S&P 500 has dropped during similar geopolitical escalations, like after 9/11.

How important is it?

Geopolitical factors paired with economic data often synchronize, influencing S&P 500 movement substantially.

Why Short Term?

Quick market reactions to geopolitical events often stabilize within weeks. However, unforeseen developments can prolong uncertainty.

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