The escalation of geopolitical tensions in the Middle East has cooled the bullish sentiment among American retail investors

Surveys show that retail investor bullish sentiment has significantly cooled this week, mainly due to the tensions in the Middle East. According to a survey by the American Association of Individual Investors, the proportion of bulls dropped from 36.7% to 33.2%, while bearish sentiment rose to 41.4%. Investors are focused on the conflict between Iran and Israel, anticipating that the U.S. may carry out military strikes against Iran. Meanwhile, Federal Reserve Chairman Jerome Powell emphasized maintaining a wait-and-see approach to monetary policy, with the S&P 500 index closing flat. The proportion of investors holding a neutral stance has also declined