Trump has taken action, how does the market view it?

Trump announces "successful attack" on Iran's nuclear facilities, market faces new risks and challenges.

According to reports from CCTV News and Global Network, U.S. President Trump announced on Saturday that a "very successful attack" had been carried out on three Iranian nuclear facilities, a sudden military action that has raised investor concerns about market volatility and energy price shocks.

Trump stated on the Truth Social platform that "all planes are safely on their way home" and indicated that "now is the time for peace." This military action sharply contrasts with the negotiation expectations from two weeks prior.

Analysts expect initial increases in oil prices, with market uncertainty set to rise significantly. Investors are closely monitoring potential Iranian retaliatory measures, particularly the threat to the critical energy passage of the Strait of Hormuz.

Wall Street analysts have differing views on the subsequent market impact, with some believing this will boost stock market confidence, while others worry it will increase inflationary pressures and geopolitical risks.

Energy market faces direct impact

Mark Spindel, Chief Investment Officer at Potomac River Capital in Washington, stated that initial panic will hit the market, and oil prices may rise:

Uncertainty will loom over the market, and Americans will face risk exposure everywhere. This will increase uncertainty and volatility, especially in the oil market.

Jamie Cox, Managing Partner at Harris Financial Group in Virginia, expects that "oil prices will definitely spike due to this news, but may stabilize within a few days." He believes that by demonstrating military strength and completely destroying Iran's nuclear capabilities, Iran has lost all leverage and may seek a peace agreement.

Jack Ablin, Chief Investment Officer at Cresset Capital, warned that this event "adds a complex new layer of risks that we must consider and pay attention to," which will have a clear impact on energy prices and may push inflation higher.

Divergent expectations for stock market response

Mark Malek, Chief Investment Officer at Siebert Financial in New York, holds an optimistic view of the stock market outlook. He stated, "I think this will be very positive for the stock market," especially considering that this seems to be a "one-time action" rather than a pursuit of long-term conflict.

Malek pointed out that if Trump had made the decision last Friday, the market would have faced two weeks of volatility. In contrast, a swift military action will provide comfort, provided that the U.S. does not seek a prolonged conflict.

However, analysts remain vigilant about the greatest risk posed by the Strait of Hormuz. Malek emphasized that if Iran has the capability to block this critical strait, "it will definitely change everything."

Key observations before market opening

Investors are closely monitoring early signals before Sunday’s market opening, to which Spindel remarked:

There is plenty of time to consider before the market opens. I am arranging to talk to some people tomorrow. When the dollar starts trading in New Zealand, we will get early indicators Analysts generally believe that this "bold action" stands in stark contrast to previous statements regarding negotiations in the coming two weeks. Market participants are assessing the damage assessment results, a process that may take time.

The core issue facing investors at present is Iran's potential retaliatory measures, and whether this is truly, as Trump stated, a "one-time" action, or if it will evolve into a broader regional conflict