Key Points
- Historically speaking, geopolitical shocks have had little lasting impact on the stock market.
- A review of the last 11 major geopolitical events showed that the S&P 500 on average was just 0.3% lower one week after the event, and 7.7% higher 12 months later, according to UBS.
- Investors do not expect the attack to escalate any further, in part because of Trump’s prior criticisms of conflicts drawn out in Iran and Afghanistan.
