Global stock mart momentum faces a Middle East stress test

It’s the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil spiked.

- DENITSA TSEKOVA EMILY GRAFFEO

Yet in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en masse.

Yes — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early gains.

That relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It’s a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus last week when readings on inflation and consumer sentiment came in better than estimated.

The airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally importantin salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the dip.

Attention then turned to the weekend. With fresh escalation underway, markets were bracing for signals from the Middle East and Washington that could shape this week’s mood — and test how durable the rally reflex really is.