War sells! Yes, that is right. Many Americans will sell their shares with the possibility of another war pending. This will cause for a drop in the stock market prices. However, there are exceptions: defense stocks and as what I like to call basic necessity stocks will have a different impact. Defense stocks will increase due to increase in demand for their product. Basic necessity stocks will either increase or stay the same.
The operation of dropping many gallons of water and ready to eat meals to Iraqi people will cost America and thus affect the stock market with fears of a tax increase or increased military spending. A terrorist action is unknown and generally shakes up the news and stock concerns. Its almost like a weather disaster.
I don't think America's decision to bomb ISIS locations will drag down the stock markets. The reason I say that is because I don't think the bombings will affect the US in any way financially. However morally I don't think it's a good idea to bomb these locations because it puts lots of innocent civilians at risk.
The stories coming in from the middle east, of children being brutally murder, alongside their family, is horrible to say the least. We are looking at a modern day holocaust, with brutality unlike anything most of us have ever seen. The US government, though, is showing that this will not be tolerated and are taking action to end this atrocity. With this bombing the world is seeing that this will not be allowed. That the ISIS will not be given free reign to o as they wish. That we will work to ensure stability in this area. This action, instead of harming, will help the stock market. Buyers can rest assure that the ISIS will not take over that region and cause havic. Uncertainity would have hurt the stocks. This action will help them.