S&P 500 Stocks That Could Benefit From the Iran Conflict

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The S&P 500 (SPX) is trading higher in a resilient show of strength after the U.S. and Israel launched a joint attack on Iran over the weekend.

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Some industries could benefit from the conflict, including defense, North American energy, cybersecurity, and precious metals, according to JPMorgan. “Defense primes benefit from missile defense deployments, drone warfare adoption, and munitions restocking,” said the firm.

JPMorgan’s Winners and Losers of the Iran Conflict

Several stocks in the industries highlighted by the firm are trading higher today, including:

  • Northrop Grumman NOC +4.40% ▲

  • Lockheed Martin LMT +2.41% ▲

  • RTX RTX +3.92% ▲

  • L3Harris Technologies LHX +2.87% ▲

  • Exxon Mobil XOM +1.12% ▲

  • Chevron CVX +1.19% ▲

  • ConocoPhillips COP +2.76% ▲

  • CrowdStrike CRWD +3.12% ▲

On the other hand, consumer discretionary stocks and global brands could emerge as losers on rising inflation expectations. That’s because Iran borders the Strait of Hormuz, which handles about 20% of global oil shipments. A blockage or disruption there could push oil prices higher, increasing costs for households and squeezing consumer spending. Higher energy costs could also hurt cruise lines, airlines, and other industries related to transportation and travel.

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