Will the Conflict in Israel Have a Ripple Effect on the U.S. Stock Market?

Portsmouth, NH (October 31, 2023)  —

The current conflict in Israel has sparked global concern about potential economic repercussions. “Geopolitical events like this always have some sort of a financial impact, but it’s usually pretty short-lived,” said Paul Stanley, of Granite Bay Wealth Management, in a recent interview with WMUR. The financial markets are resilient and tend to weather the storms of geopolitical events. 

Fortunately, the U.S. stock market is very diverse and doesn’t rely on a single geographic region, providing a buffer against isolated geopolitical events like the fighting between Israel and Hamas. Short-term fluctuations are possible, but history shows that the market is likely to rebound swiftly once tensions subside. As of now, the market remains stable, and as long as diplomatic efforts continue investors will stay the course. The Israel conflict is obviously a matter of serious concern from the standpoint of human rights, but from a strictly economic standpoint it’s unlikely to inflict long-lasting damage on the U.S. stock market. For investors, it’s important to maintain the long view and focus on the broader forces that shape market performance.

Watch Paul’s interview with WMUR to learn more.