Is the Market Immune to Geopolitical Risks? The US-Iran Situation Will Reverse the Logic of US Stock Market Trends

Recently, many investors have felt that the US stock market has long been immune to the Middle East conflict, but the opposite is true. The ongoing and volatile US-Iran situation has led the market to form a consensus that geopolitical conflicts in the Middle East are becoming normalized; the continuous rise in crude oil prices will persistently push up US CPI, intensifying imported inflationary pressures. The market's previous expectations for interest rate cuts will gradually fade, and may even strengthen the trading logic for restarting rate hikes, exerting strong downward pressure on US stocks.

The high-valuation AI technology sector is the first to bear the brunt of the pressure. The market has officially entered a phase of structural differentiation and adjustment. The previous one-sided, volatile upward trend in the AI sector has come to a temporary halt, and subsequent wide fluctuations will become the norm.

Do you remember the market analysis article I published earlier? Capital markets are always full of uncertainty, and risk control is the core throughout. By reasonably managing positions and reserving buffer space to cope with sudden market movements, one can calmly handle volatility in both bull and bear markets, grasp the rhythm, and protect gains during turbulent times. $Invesco QQQ Trust(QQQ.US) $Taiwan Semiconductor(TSM.US) $NVIDIA(NVDA.US) $SpaceX(SPCX.US) $Micron Tech(MU.US) $SK Hynix(SKHY.US) $Alphabet(GOOGL.US) $Intel(INTC.US) $Broadcom(AVGO.US)