Trump's Statement Just Crashed the S&P 500 | Here's Why
In a Nutshell
Trump's threat of massive strikes on Iran has spiked oil prices 42% in 20 days and pushed the NASDAQ down 2% toward critical support at 685. Tech leaders like Tesla and Google posted weak results—Tesla's margins collapsed without subsidies and Google's free cash flow turned negative—adding to selling pressure. If the 680-685 zone breaks, leveraged positions will liquidate and the index will enter correction territory.
These notes were generated by AI and may contain inaccuracies.
The NASDAQ market is currently down 2% and appears to be breaking support levels that could push losses to 2.25-2.5%. President Trump stated he will hold Iran responsible for strikes conducted by Yemen's Houthis and announced he is close to a decision on a massive attack on Iran. Trump stated that the attack will be bigger than ever before, adding that Israel will join in two minutes if asked but stated we don't need anybody and that they haven't received enough pain yet.
Oil prices are rising due to these threats, which will negatively impact current inflation rates. Inflation was previously reported as coming down after a ceasefire, but since the ceasefire ended and attacks resumed, the Strait of Hormuz has remained closed. Oil prices have increased 42% in 20 days. Markets have aggressively retraced as a result.
Tesla reported what the speaker considers terrible earnings despite revenue being greater, with razor-thin margins and no longer making net profit since US government subsidies ended. Google sold off 6.5% after killing earnings, with concerns about overinvestment in AI. This marks the first time in history that Google's free cash flow has gone negative.
The NASDAQ composite represents a basket of the most valuable tech companies. Markets remain bullish as long as the index holds above the major support level around 685, with a cushion at 680. If this support breaks, more uncertainty, negative sentiment, and fear could spiral. The current decline is around 7-12%, and approaching the 10% mark would enter correction or bear market territory where leveraged traders face liquidation.
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