The U.S. stock market showed little reaction to President Trump's aggressive actions in Venezuela, with investors viewing the event as unlikely to escalate into a larger conflict, and instead focusing on fundamentals like earnings growth and AI, supporting a bullish outlook for stocks.
The year 2025 was marked by global turbulence, including ongoing wars in Ukraine and Gaza, a significant US political comeback with Trump, shifts in international alliances and sanctions, major trade tensions, and historic political changes such as Japan's first female prime minister, all shaping a tumultuous global landscape.
US equities are sliding amid concerns over potential escalations in Middle Eastern conflicts, prompting discussions among Wall Street experts about the market fallout. While some believe the pullback is a "buyable dip" due to strong earnings, others caution that geopolitical headwinds and rising yields could hinder further market growth. Historically, geopolitical events have led to initial selloffs followed by a rebound, prompting some investors to adopt a wait-and-see approach.