U.S. Stock Market Faces Pressure Amid Middle East Conflict and Policy Uncertainty

On March 30, the ongoing conflict in the Middle East and increasing policy uncertainty have put pressure on the U.S. stock market, leading to a decline in the S&P 500 index for the fifth consecutive week, marking the longest losing streak since 2022. According to BlockBeats, despite multiple attempts by U.S. President Donald Trump to calm market sentiment, investor reactions have noticeably weakened. Market analysts indicate that as the conflict remains unresolved and policies fluctuate, the 'Trump put' effect is diminishing. Investors are no longer solely trading based on policy statements and are even beginning to take contrary actions in the absence of substantial progress. Meanwhile, oil prices remain high, with WTI crude surpassing $100, exacerbating global 'stagflation' concerns. Coupled with the uncertainty in the Middle East, market risk aversion is rising. The VIX volatility index has climbed above 31, significantly higher than its historical average. Institutions generally believe that without substantial easing of the Middle East situation, particularly the stabilization of the Strait of Hormuz, policy rhetoric alone is unlikely to reverse the market's downward trend.