The recent Middle East conflict has, despite the associated uncertainties, led to a significant rise in the major US indices, indicating increased investor optimism. The S&P 500 and Nasdaq especially stood out, showing considerable gains in the second quarter of 2025. The Nasdaq even recorded an increase of around 10%, while European indices like the EuroStoxx 50 declined during the same period.
Technology Companies Fuel US Markets
This positive development in the US markets is largely driven by the strength of major technology companies. It reflects a return of investor interest, after European markets were more dominant at the beginning of the year. Despite the military intervention of the USA in the Middle East conflict, the long-term economic and stock outlooks are not currently seen as sustainably negative.
Impact on European Markets
This could mean a shift for European markets: While Europe initially benefited from budgetary measures and defense spending, the increased interest in US stocks might now also affect capital flows into Europe. Moreover, the escalation of the conflict brings increased uncertainty to the markets; for instance, the DAX has shown volatile developments with short-term gains following declines in oil prices, but also potential risks for renewed losses with further escalation.
Experts deem a comprehensive spread of the conflict unlikely, thanks to the military superiority of the USA. Significant oil price shocks are also absent, contributing to stability in financial markets.
In summary it can be said:
- The Middle East conflict has temporarily led to increased volatility.
- The major US indices reacted with substantial gains.
- Investors show optimism despite geopolitical risks.
- European markets could be influenced by this dynamic.
- The fundamental outlook remains relatively robust in light of military superiority and stable oil prices.
Investors are closely monitoring these market developments as they provide clues about risk appetite and potential capital shifts between regions.