But, the unexpected rejection of sanctions on Iran by Turkey poses a new risk to the on-going dispute between the U.S. and Iran.
While both countries have narrowly avoided a full-blown war, U.S. President Donald Trump’s consistent pressure on the Iranian government through his tweets led to extreme reactions from the Iranian government.
According to pre-markets data, the U.S. stock market is not fazed by Turkey’s statement. The Dow Mini indicates that the Dow Jones Industrial Average will open with an increase of 455 points.
Since the turn of , the Dow Jones is already up 2. % and another strong day of trading in the stock market would take that to 2.9%.
“This stock market couldn’t be brought down by impeachment.” , war, or pandemic. What is left there to be afraid of? ”He said.
The Dow Jones Industrial Average (DJIA) is set for a 3% gain month-to-date | source: Yahoo Finance One Variable that can Affect the Bull Market
In the short-term, there are no fundamental factors that pose an immediate threat of a steep stock market correction.
In the medium to long-term, there are two variables that may significantly slow down momentum in the markets.
The two variables are the possibility of China unable to fulfill its purchase agreement of agricultural products with the US and the rising price to earnings ratio of major companies.
The U.S. and China officially signed a phase one trade deal to prevent additional tariffs from being imposed. That removed burden on major industries including agriculture, manufacturing, tech, and cars.
If China is unable to purchase massive amounts of American farm products as stated in the agreement, it could lead to the US restoring tariffs and further worsening the relationship.
GIPHY App Key not set. Please check settings