In Iran fallout, US shares hold up better than global rivals, for now
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US equities have held up better than global rivals since the US-Israeli military strikes on Iran began, with the S&P 500 index falling 4% compared to larger declines in Europe and Japan. The US economy's reduced reliance on oil and heavy tech presence are supporting US stocks, but investors are wary that the market environment could change if the conflict drags on.
The US stock market has been more resilient than other global markets since the Iran conflict began. The S&P 500 index has fallen 4% compared to 9% for Europe's STOXX 600 and 12% for Japan's Nikkei. The US economy is less reliant on oil, with a shift to a services-based economy and diverse energy sources. The US is also the world's largest oil producer and a net exporter, making it less vulnerable to supply disruptions. The heavy presence of tech stocks in US indexes has also helped, as they are seen as more immune to economic shocks. The strength of the US dollar has also supported US equities.
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