Financial markets will remain on edge as the war proceeds and uncertainties remain, including the ongoing state of shipping traffic, the profile of Iran’s leadership and fate of its nuclear capability.

The financial markets have continued to be volatile in the week and a half since the U.S./Israeli strikes on Iran.  Oil prices have swung the widest, and while still up 25-30% since the conflict began, had been briefly up more than twice that at the start of week #2.

This weekend, U.S. and Israeli air attacks on Iran, killing of the 86-year-old Supreme Leader Ayatollah Ali Khamenei, and various regional responses have predictably unsettled financial markets worldwide going into Monday. 

Both stock and bonds enjoyed a strong third quarter of 2025, adding significantly to half-year gains.  After a sell-off early in the year, leadership was restored by the large technology companies.

Both stock and bonds enjoyed a strong third quarter of 2025, adding significantly to half-year gains.  After a sell-off early in the year, leadership was restored by the large technology companies.

Looking like a reversed videotape of sinking ships, stocks fully recovered from their sharp, early April drop by quarter-end. 

New tariffs announced by President Trump yesterday evening have hit stocks hard, with overseas markets off in the 2-3% range and the S&P 500 down more than 3% at the open.

New tariffs announced by President Trump yesterday evening have hit stocks hard, with overseas markets off in the 2-3% range and the S&P 500 down more than 3% at the open.

Financial markets were choppy in the first quarter, with stocks showing significant weakness in the second half.  The S&P 500 ETF declined by 4.3%, on a par with the weak start to 2022. 

After hitting an all-time high on February 19th, the S&P 500 index has slid more than 8%, and almost 6% just in March, leaving it down about 5% this year. The technology-heavy NASDAQ index has fallen more sharply and now is off about 10% year-to-date.