The US stock market is likely to open lower in Friday’s trading session, March 6, as the futures of three key averages, including the S&P 500, Dow Jones Industrial Average, and Nasdaq, are trading lower by 0.6%, 0.5%, and 0.7%, respectively, in pre-market trade, as the ongoing conflict in the Middle East has put risky assets out of investors’ radar.
US equities have oscillated between losses and gains through this week, reacting to headlines of strikes between the US and Iran, which are expected to last longer than anticipated earlier, with analysts warning that it could keep stocks under prolonged pressure.
Iranian Foreign Minister Abbas Araghchi told NBC News his country had no intention to negotiate and was ready for a ground invasion, although US President Donald Trump commented later to the same station that he was not thinking about such a move.
Trump said Iran is being demolished “ahead of schedule and at levels people have never seen before”, claiming the country now has “no air force, no air defense” and the air force is “gone”.
US-Iran war hits Asian markets harder than US markets
Although the US has directly participated in the war with Iran, the impact on stocks has remained limited compared to the massive crash seen in Asian equities. For comparison, South Korea’s Kospi is down by 10.56%, while the Nikkei 225, Hang Seng, and Nifty 50 were down between 3% and 6.72% this week.
However, in the same period, the S&P 500 was only down by 0.70%, which indicates a reversal of a rotation by global funds into Asia and a renewed shift toward the US as a haven, a move also supported by a stronger dollar.
The war in Iran is forcing investors to reevaluate one of their most profitable stock strategies, leading some to conclude that the “Sell America, Buy Asia” trade has reached an inflection point.
The ongoing Iran war has impacted Asian markets massively, partly because of the region’s outsized reliance on fuel shipments through the Strait of Hormuz. There is also growing concern that a sustained supply shock may trigger a global economic slowdown, undermining key export industries.
As a result, investors are taking profits from the recent AI-driven rally, particularly in the outperformers of the past year, which include South Korea and Taiwan, which gained 75.63% and 27%, respectively, in 2025.
Disclaimer: : We advise investors to check with certified experts before making any investment decisions.
