In this article, we will look at the 5 geopolitical events with highest impact on S&P 500. If you want to read our detailed analysis, go directly to the 20 Geopolitical Events with Highest Impact on S&P 500.
5. Nixon/Watergate (3/15/1974)
Initial Impact: -1.72%
30-days Impact: -7.28%
90-days Impact: -8.04%
Average impact: -5.68%
The Nixon/Watergate scandal was a major political controversy in the US during the presidency of Richard Nixon from 1972 to 1974. This event ended with the resignation of Richard Nixon, the President of the US. The Nixon/Watergate scandal was one of the biggest geopolitical events with the highest impact on the S&P 500.
4. Korean War (6/23/1950)
Initial Impact: -12.8%
30-days Impact: -8.67%
90-days Impact: 1.20%
Average impact: -6.76%
The Korean War was fought between North Korea and South Korea and their allies on the Korean Peninsula. The Korean War had a devasting impact on the market and on average the S&P 500 fell by nearly 6.76%. The Korean War ranks fourth among the 20 geopolitical events with the highest impact on the S&P 500.
3. Pearl Harbor (12/7/1941)
Initial Impact: -6.87%
30-days Impact: -2.90%
90-days Impact: -12.02%
Average impact: -7.26%
The attack on Pearl Harbor by the Imperial Japanese Navy Air Service surprised the US. The Pearl Harbor event was the beginning of the World War II. The Pearl Harbor attack is one of the major geopolitical events with the highest impact on the S&P 500.
2. US Bombs Cambodia (4/29/1970)
Initial Impact: -15.3%
30-days Impact: -6.43%
90-days Impact: -4.94%
Average impact: -8.89%
The US bombing of Cambodia was one of the biggest geopolitical events with the highest impact on the S&P 500. The ‘Operation Menu’ was a covert US Strategic Air Command tactical bombing campaign conducted as part of both the Vietnam War and the Cambodian Civil War.
1. Arab Oil Embargo (10/18/1973)
Initial Impact: -16.23%
30-days Impact: -8.45%
90-days Impact: -13.04%
Average impact: -12.57%
The Arab oil embargo is the most significant geopolitical event with the highest impact on the S&P 500. The Arab oil embargo was a temporary cessation of oil shipments from the Middle East to the US. The OPEC ceased oil supply to the US due to its support of Israel during the Yom Kippur War.
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