Middle East tensions make Wall Street nervous

Rising conflicts in the Middle East are causing concern on Wall Street, as fears of worsening violence limit stock market gains. The S&P 500 went up slightly on Monday, fueled by hopes that the clash between Iran and Israel wouldn’t turn into a bigger war. However, at least one major bank, JPMorgan Chase & Co., is growing cautious about stocks reaching new highs soon.

The unrest in the region is adding to other worries, like rising prices and uncertainty about when the U.S. might lower interest rates. These issues are making investors hesitant, even as the stock market sits close to record levels. Some experts believe the market’s recent strength could weaken if the Middle East situation gets worse. Despite the risks, there’s some optimism. Reports suggest Iran may want to avoid a larger conflict, which has calmed markets a bit.

Oil prices, which spiked earlier due to the tensions, have also eased. Still, Wall Street remains on edge, with traders closely watching how events unfold. Investors are also dealing with other challenges, like trade disputes and shifting economic policies. For now, the stock market’s upward climb is being tested by these global uncertainties. While some see room for stocks to rise further, others warn that caution is needed until the Middle East tensions cool down.