BlockBeats news, on March 30, the conflict in the Middle East continues to escalate, policy uncertainty intensifies, and the U.S. stock market is under downward pressure. The S&P 500 index recorded its fifth consecutive week of decline, marking the longest losing streak since 2022. Although U.S. President Trump has repeatedly signaled de-escalation in an attempt to stabilize market sentiment, investor reactions have noticeably weakened.
Market analysis indicates that as the conflict drags on and policies fluctuate, the “Trump put option” effect is fading, and investors are no longer trading solely based on policy statements, even beginning to take opposite positions in the absence of substantial progress.
Meanwhile, oil prices remain high (WTI crude above $100), exacerbating global “stagflation” concerns, combined with the uncertainty in the Middle East, leading to an increase in market risk aversion. The VIX volatility index has risen above 31, significantly higher than the historical average.
Institutions generally believe that without substantial de-escalation in the Middle East, especially the stabilization of the Strait of Hormuz, relying solely on policy rhetoric will be insufficient to reverse the market’s downward trend.