The US drops bombs on Iran over a weekend, and by Monday morning, traders are placing bets like they’re reading from a playbook. The pattern connecting Trump’s military actions against Iran to equity rallies has become difficult to ignore.
The latest data point came after US strikes against Iran were executed over the June 27-28 weekend, following what the administration described as Iranian provocations against shipping.
The de-escalation trade that set the template
On June 11-12, Trump canceled planned strikes on Iran, signaling progress toward a peace deal. The market reaction was immediate and emphatic.
The S&P 500 climbed approximately 1.8%. The Nasdaq did even better, rising about 3%.
