- Dow Jones futures plunged points on Monday on rising Middle East tensions.
- Soleimani’s daughter issued a chilling threat to “Crazy Trump” targeting American soldiers.
- Geopolitical uncertainty likely to trigger stock market volatility in the short term.
Dow Jones Industrial Average (DJIA) futures contracts took a brutal point fall in early trading Monday, pointing to a weak stock market open. The fallout from Trump’s assassination of Qassem Soleimani continues to rock the financial markets as tens of thousands gather on the streets of Tehran for the Iranian general’s funeral.
Among the chants of “death to America” came a powerful threat from Soleimani’s daughter, Zeinab. Shedirected her speech to “crazy Trump”and warned of a “dark day” for America. But she saved themost chilling line for the families of American soldiers.
Families of the American soldiers in western Asia have witnessed America’s humiliation in Syria, Iraq, Lebanon, Afghanistan, Yemen and Palestine wars, and will spend their days waiting for the death of their children.
*** futures plunge 487 points
Dow Jones futures contractsfell more than 200 points before settling (points lower at 5.) *************************************************************** am ET. The threat of war in the Middle East has forced traders into risk-off mode as uncertainty grips the markets.Safe havens like gold rallied(alongside Treasury bonds and oil.
********** (S&P) ************************************************ (futures)andNasdaq Composite futuresare down 0. (% and 0.) % respectively.Bitcoin is trading at $ 7,
************Iran threatens attack on the White House
The threat from Soleimani’s daughter comes just hours after anIranian MP warned of a retaliatory attack on the White House. As tensions run high, MP Abolfazl Abutorabi reportedly told reporters:
“We can attack the White House itself, we can respond to them on the American soil. We have the power, and God willing we will respond in an appropriate time. ”
The Trump administration responded with a list of90 further Iranian targets, including cultural sites which would be widely seen as a war crime. A move Trump strongly defended.
They’re allowed to kill our people … They’re allowed to torture and maim our people. They’re allowed to use roadside bombs and blow up our people. And we’re not allowed to touch their cultural site? It does work that way.
A short-term threat to the stock market and Dow Jones
Global stock markets and the DJIA took an immediate hit when news of Soleimani’s assassination broke on Friday. Geopolitical tension in the Middle East is a warning sign to traders who quickly piled into haven assets.
As CCN reported, however, this is more likely to be ashort-term stock market reaction rather than a long-term trend.
*** Historically, financial markets recover swiftly after news of rising tension in the Middle East.
CNBC analyzed the market’s reactionto crises spanning 40 years and found that while stocks initially drop, they make their way higher in the following three months. ”
While analysts broadly expect a period of volatility, the tensionsdon’t currently signal an end to the business and market cycle
This article was edited by********************** Samburaj Das (**********************************.
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