Traders weigh selling US stocks amid geopolitical uncertainty

Despite escalating geopolitical tensions, the US stock market has remained unusually calm, thus leaving traders uncertain about whether to close their positions or keep them in anticipation of a rising risk premium. According to analysts polled by Bloomberg, market fluctuations have been muted even as global events unfold.

Among all asset classes, oil prices are expected to react most sharply to the worsening situation in the Middle East. However, stocks could also face downward pressure if tensions intensify. Last week, the S&P 500 Index dipped 1.3% after things got heated between Iran and Israel.

Anthi Tsouvali, a strategist at UBS Global Wealth Management, echoed Bloomberg’s assessment, predicting a moderate response from US stocks to geopolitical risks. She noted that the market has grown more resilient to shocks, partly due to President Donald Trump's unpredictable trade policies in recent months, which forced investors to adapt quickly to such shifts.