When US markets opened on Monday, the NASDAQ Composite initially posted losses. Soon after, the tech-heavy index reversed course and moved higher. By midday, it had gained 0.39%, while the S&P 500 remained flat and the Dow Jones Industrial Average edged lower.
Market participants assessed whether Iran’s remaining leadership would seek a deal with the Trump administration or allow instability to continue. Stephen Coltman, head of macro at 21Shares, said inflation expectations in the United States have risen.
Coltman noted that higher expected inflation, combined with unchanged deposit rates, could drive interest toward scarce assets. If deposit rates stand at 3% while inflation expectations reach 5%, cash loses purchasing power over time. In that scenario, investors may seek alternatives such as Bitcoin.
At the same time, US equities have lagged other global markets this year. IG analysts Chris Beauchamp and Axel Rudolph said investors appear to treat US stocks as a relatively safe haven despite the conflict. They added that stocks may tolerate the war as long as it does not escalate further.
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