Analysts say the market still expects the situation to escalate further in the coming days or weeks.

Investing.com - According to a report released by Vital Knowledge on Friday, despite President Donald Trump’s decision to delay the Iran deadline, the stock market has not shown any significant signs of relief.

Get deeper analyst reports on InvestingPro

Analyst Adam Crisafulli wrote, “Trump’s delay of the Iran deadline… did not trigger a noticeable rebound in the stock market this morning, as investors remain highly tense about the entire situation.”

Crisafulli cited reports that the Pentagon may deploy an additional 10,000 troops to the Middle East, stating that this “undermined any initial optimism triggered by the delay.”

He added, “The market consensus still seems to believe that war will escalate further at some point in the coming days or weeks.”

Vital Knowledge noted that the potential consequences of further escalation, including extended troop deployments, shipping disruptions, rising yields, and increasing oil prices, remain at the core of market anxiety.

Aside from geopolitics, Crisafulli also mentioned comments from Fed’s Robert Perli, who warned that asset purchases would significantly slow down after April. He stated that, given overseas developments, the market is paying less attention to this.

Vital Knowledge also pointed out the independent weakness in the tech sector, mentioning concerns over a “streamlined OpenAI,” a large number of upcoming IPOs, and China’s retaliatory investigations into U.S. trade policies.

Vital Knowledge stated that, given the risks and political constraints involved in military escalation, the White House may continue to seek an exit strategy.

This article was translated with the assistance of artificial intelligence. For more information, please see our terms of use.