Markets react in 'typical' conflict playbook fashion to Israel, Iran

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16 hours ago

US equities slump (^DJI, ^IXIC, ^GSPC) while oil prices soar(CL=F, BZ=F) Friday morning following Israel's airstrikes against Iranian nuclear facilities and top military leadership.
NYSE senior market strategist Michael Reinking comes on the Morning Brief to speak on the stock and bond market (^TYX, ^TNX, ^FVX) reactions he views as the "typical... conflict playbook."
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Let's get into today's strategy session. Geopolitical risk hitting stocks today as investors de-risk into the weekend and brace for escalating tensions in the coming days. All of this halting gains that were close to taking the S&P 500 back towards records. Joining us now, we've got Michael Reinking, who is the New York Stock Exchange senior market strategist here. Michael, just give us first the pulse that you were sensing from some of your colleagues on the floor of the exchange this morning before you made your way here to our studio and and what you're hearing from them right now.
Yeah, so uh, thanks, thanks for having me back in studio this morning, Brad. Look, so I think, you know, we're seeing the typical kind of conflict playbook um, you know, this morning, seeing equity markets move lower, oil prices, gold higher. Uh, you know, but there are some interesting wrinkles kind of within that. Uh, you're you're seeing the dollar rally, but we're not even kind of getting back to the losses that we had seen, you know, kind of as of yesterday. Treasury yields are are moving a little bit higher. Typically you'll see Treasury yields move lower in kind of that risk off environment. You know, but you have that push and pull of, you know, how this is going to potentially impact inflation on a go forward basis, right? So, you know, the the move in general though is is pretty muted. If you look at the S&P 500, right? We're essentially unchanged for the week, right? So we haven't really kind of seen, you know, a significant drawdown. You know, markets are going to be in kind of a wait and see in terms of, you know, kind of what the response is, you know, how that and you know, whether, you know, how how aggressive that response is, um, and whether you start to see kind of oil markets impacted elsewhere within the region.