By Zacks Equity Research
Publication Date: 2026-03-18 13:35:00
Chicago, IL – March 18, 2026 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA.
While geopolitical conflicts grab headlines and spark initial volatility, stocks typically have a remarkable ability to look forward and move on.
The recent escalation in the Iran conflict—marked by U.S. and Israeli strikes, disruptions in the Strait of Hormuz, and oil price spikes—has understandably unsettled investors. Yet, the S&P 500 has declined only about 3% since the heightened tensions began, a relatively muted reaction compared to past crises.
History shows that markets often absorb such shocks quickly, typically recovering within weeks or months if no sustained energy crisis materializes. With oil prices already cooling and positive seasonal patterns approaching, we believe this risk-off phase is temporary. Technology, after a subpar start to the year, stands ready to retake the lead as fundamentals reassert themselves.
The pattern is well-established. Analyses of major post-World War II conflicts reveal that the S&P 500 has, on average, returned to pre-event levels within about 28 days and posted positive gains one year later in most cases. Geopolitical shocks tend to cause sharp but short-lived pullbacks, especially when the underlying economy remains resilient.
In the current episode, the market’s composure reflects several stabilizing factors: diversified global supply chains have limited oil disruption impacts, central banks have…
