How markets are reacting to Iran: Live updates – CNN

This post was originally published on this site

Stocks had a wild ride overnight amid the escalation between the United States and Iran. But less than 24 hours after Iran retaliated with attacks on Iraqi military facilities that house US forces, equities are rallying.

So what gives?

“I think geopolitical issues are huge,” said Teddy Weisberg, founder of Seaport Securities, said on the CNN Business digital live show Markets Now, likening the problems to the trade worries that governed investor sentiment last year.

“We saw the trend last night, the futures were down pretty big when the [Iranian] attack started,” Weisberg said. Equally, the turnaround came swiftly as details emerged, including that no American lives had been affected.

Since then, President Donald Trump further eased investor fears, saying Iran appears to be standing down. Stocks are rallying.

“The stock market reduces things to its lowest common denominator pretty quickly,” Weisberg said.

At the end of the day, however, stocks are driven by the economy and corporate earnings, he added.