S&P 500 Retreats From Session Highs Amid Rising Geopolitical Tensions

With rising geopolitical tensions, traders profit

Several missiles that landed in Poland and killed at least two individuals caused the S&P 500 to retreat from session highs. A committee on national security and defense matters was invited to an urgent meeting by Poland. Poland hasn't yet stated what it intended to talk about. It is clear that Poland will assess whether these missiles originated from Russia, which today carried out significant strikes against the energy infrastructure of Ukraine.

Poland is a NATO member, therefore the possible escalation of geopolitical tensions is taken into account by the markets. It is not unexpected that traders swarmed to purchase safe-haven assets. The US Dollar Index recovered some of its losses and moved closer to the 107 level. As the demand for safe haven assets increased, gold also found support and reclaimed the $1775 mark.

The price of WTI oil increased toward the $88 mark as Hungary convened its security council to discuss Ukraine's decision to halt oil transit from Russia via the "Druzhba" pipeline. These developments might give oil stocks a lot of support in the coming days.

Putting geopolitics aside, the market has been upbeat today as a result of Walmart's presentation of solid third-quarter results, revised expectations, and $20 billion repurchase program.

Whether the current geopolitical developments will have an impact on the U.S. stock market is the main concern. Following the recent rally, some traders might want to lock in profits in the near future.

In the long run, the suspension of Russian oil exports to Hungary could be a major issue and boost the oil market as the G7 nations get ready to cap the price of Russian oil. Higher oil prices increase inflation, which might make the Fed more hawkish and damage stocks.