Wall Street Strategists Warn Not to Bet on Trump Rescuing Stocks Rattled by Iran War

Core Viewpoint - The ongoing Iran war poses significant risks to the US economy, particularly through potential inflationary pressures from rising oil prices, and differs from previous crises where traders expected President Trump to intervene to stabilize markets [1][2]. Market Reactions - US stocks have shown resilience compared to international markets, with the S&P 500 experiencing a decline of 0.9% after an earlier drop of 2.5%, indicating a partial recovery as traders stepped in to buy the dip [3][4]. - Futures contracts on the S&P 500 initially slipped by 0.8% but later reduced losses to 0.2%, reflecting a cautious optimism among investors [3]. Strategic Responses - President Trump announced measures to provide insurance guarantees and naval escorts for oil tankers in the Strait of Hormuz, aiming to mitigate potential energy crises stemming from the conflict [6].