A calm market response to the US attacks on Iranian sites showed investors view the action as “success in neutralizing Iran,” according to Jeremy Siegel, chief economist professor of finance and wisdom tree. “I think most people agree that they are farther away from producing bombs than they did on Friday. That’s positive for the market… for a final settlement in the Middle East.” “It’s like offsetting fear.” Even after the US stormed three nuclear sites and joined Israeli war with Iran over the weekend, stock futures remained largely unchanged. President Donald Trump said the air attacks “eliminate” these sites and threatened more military action if the country did not build peace. “This is about neutralizing Iran, which is positive and negative about the risk of retaliation,” Siegel said. “Positive and potential negativity are both rising at the same time, and the center is shrinking it.” Traders hope that Iran will not use options that could endanger the wider conflict and the removal of the regime there. Iran could target US officials at nearby bases or close the Strait of Hormuz. There is no major retaliation by the .spx ytd mountain S&P 500 Iran, Siegel said the stock market could score a new record in the coming weeks. “I wouldn’t be surprised to see it in the coming weeks, assuming there’s no major action from Iran… The new high for the S&P 500 will certainly be achieved in the coming weeks,” he said. The broader market has not wavered since Israel first attacked Iran this month. The S&P 500 rose by about 1% in June, falling just 3% below its all-time high since February.
