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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Trump has been ‘very clear’ in message to Iran, State Department spokesperson says:”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because A forceful U.S. message to Iran can raise perceived geopolitical and oil-supply risk, which often supports energy prices and could benefit oil majors like Chevron (CVX) and Exxon Mobil (XOM), as well as broad energy ETFs such as XLE, OIH, and VDE. Heightened Middle East tension also tends to increase defense spending expectations, which can be supportive for defense contractors like Lockheed Martin (LMT), Northrop Grumman (NOC), RTX (RTX), and related aerospace & defense ETFs such as PPA, XAR, ITA, and XAR. However, if markets interpret the rhetoric as escalating the risk of broader conflict or disrupting global growth, overall risk-off sentiment could partially offset gains in these sectors and increase volatility across the broader market.
Here are some of the stocks that might be affected:
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Northrop Grumman Corp. ((NOC)),
Rtx Corporation ((RTX)),
Energy Select Sector SPDR Fund ((XLE)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
Invesco Aerospace & Defense ETF ((PPA)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)).