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US-Israel Iran Attack Drops Market, Cease-Fire Sparks Rally

5/1/2026

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Story summary
  • United States and Israel attacked Iran on Feb. 28, sparking a market downturn.
  • The average domestic U.S. stock fund fell 1.2 percent in Q1 yet posted a 16.8 percent gain through March despite the war.
  • Over the past five years the same funds returned 8 percent annualized.
  • On Wednesday a cease-fire in the Iran war coincided with a stock-market surge and falling oil prices, bringing the S&P 500 near its start.