Industry Odisha Bureau, April 8: Evincing how geopolitical signals are driving market swings, US President Donald Trump’s eleventh-hour change of mind in effecting a two-week extension to his previous 48-hour deadline issued against arch rival Iran intriguingly marked a remarkable development yesterday (April 7) at the S&P 500 that reportedly turned green by stamping out all its earlier losses and fears.
Experts view that the markets react to the pricing risk factors, and accordingly it falls or rebounds.
When Trump’s latest warning was posted on his official X handle Truth Social reportedly averred to be the ultimate deadline issued against Iran yesterday, S&P 500 instantly reacted with immense fears, anticipations and losses. But, soon after the US President extended the deadline on Iran to two more weeks, all fears and anticipations got evaporated and the market reactions reportedly went on a reversal mode all of a sudden.
Notably, the Standard & Poor’s 500 Index (S&P 500) tracks the performance of 500 large-cap US companies listed on major US exchanges such as the NYSE and Nasdaq. It is managed and maintained by S&P Dow Jones Indices and is widely used as a benchmark for US equity performance.
Experts in money matters and stock exchange affairs opined that the “ordinary investors react, while larger players often anticipate”.
Such a queer development is evident enough to be concluded that how “market has learned the rhythm of fear depending on the geopolitical rhetoric uttered by someone in paramount power and position”, viewed market strategists and political experts.
