Investors Are Wondering If Stocks Have Seen the Worst of the War

US equities have faced extreme volatility amid the Iran conflict, now entering its third week, as Wall Street assesses geopolitical risks and market stability. Investor sentiment is shifting cautiously optimistic, with growing speculation that the worst of the war’s economic impact on stocks may have already passed. The conflict’s prolonged duration has led analysts to reassess initial worst-case scenarios, though uncertainties remain about long-term regional stability and oil market disruptions. Early signs of market stabilization include reduced intra-day swings and selective sector rebounds, particularly in defense and energy stocks. While risks persist, institutional investors are recalibrating portfolios, betting on a potential near-term recovery if hostilities do not escalate further.