As tensions in the Middle East escalate, the stock market continues to remain largely unaffected. However, strategists argue that any major movements in oil futures are likely to be the biggest driver of shifts in the equities market, according to Yahoo Finance.
"Oil prices will determine whether volatility persists," wrote Morgan Stanley chief investment officer Mike Wilson in a note to clients on Monday morning.
On Monday, after an overnight spike, oil prices retreated. Brent crude (BZ=F), the global benchmark, dropped by about 2%, falling below $75 a barrel. West Texas Intermediate (CL=F) futures slid around 3%, reaching $72 per barrel.
As oil fell, stocks gained. The S&P 500 rose 0.2%, the tech-heavy Nasdaq Composite climbed 0.3%, and the Dow Jones Industrial Average edged slightly above flat. By the end of the day, all three indexes had pulled back from their highs following reports that Iran launched missiles at US bases in Qatar and Iraq in retaliation for US strikes on Iranian nuclear facilities. Read 'Zamin' on Telegram!
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