Personal Finance
Why the stock market is hitting records despite Iran war
Key Points
- The S&P 500 closed at a record high on Wednesday. The U.S. stock index has rallied sharply since the end of March.
- Stocks have been resilient even as the Iran war continues and there remains a blockade on oil flowing through the Strait of Hormuz.
- The stock market is forward-looking: Investors are betting on a quick resolution to the conflict, economists said.
- That’s largely because investors have been conditioned to believe that President Donald Trump will back off if the economic pain becomes too intense, economists said — the so-called “TACO” trade, shorthand for “Trump always chickens out.”
