The S&P 500 (SPX) has remained incredibly resilient in the face of the Israel-Iran war. Since the start of the conflict on June 13, the benchmark index has remained in positive territory with a 0.35% return.
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Over the weekend, the U.S. struck three nuclear sites in Iran. Many investors had expected the S&P 500 to trade in the red today due to the U.S. joining the war, although SPX is actually up by 0.37%.
Israel-Iran War Could Last 2 Years, Warns Iran Official
Following the weekend attack, an Iranian official told CNN that the war could last up to two years based on internal estimates and that Iran is prepared to continue fighting.
“Morale is high and the immense demand by the Iranian people to strike Israel is unprecedented,” said the official. The official added that negative sentiment against the U.S. and Israel has steadily increased.
Whatever the case, the market certainly believes that the war will be brief based on recent price action. At the same time, an extended war could force investors to rethink their rationale, raising the risk for downside.
The S&P 500 has returned 1.47% year-to-date.
