The seven tech giants lost nearly $900 billion in a single day! Wall Street veteran says: The market is overreacting; geopolitical crises are buying opportunities.

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The escalation of the US-Iran conflict has sparked a rise in market risk aversion, and US stocks faced selling pressure on Thursday. However, several experienced market strategists believe that geopolitical risks usually only cause short-term fluctuations and are unlikely to change long-term market trends. This round of correction could instead provide buying opportunities for investors looking to buy the dip.

On July 24th, Ed Yardeni, president of Yardeni Research and economist, and Tom Lee, head of research at Fundstrat, stated in their latest report that the market’s reaction to the situation in the Middle East may be excessive. The two strategists pointed out that historical experience shows that similar geopolitical conflicts often lead to short-term market corrections, but may subsequently turn into buying opportunities.

During this sell-off, technology stocks bore the brunt. The “Magnificent Seven” lost a total market value of $889.3 billion on Thursday, marking the biggest single-day market cap loss since the tariff shock in April 2025, further intensifying market volatility.

The main source of market concerns is the possibility that the US-Iran conflict will escalate further. According to Xinhua citing US media reports on Thursday the 23rd, US President Trump said he is "seriously considering" resuming large-scale military operations against Iran. Trump told US media that he is "close" to deciding whether to launch a "large-scale attack" on Iran, and the action could be bigger than the "Epic Fury" operation against Iran at the end of February this year. Trump emphasized that no final decision has been made yet, but the US military is already prepared.

Due to rising risk aversion and higher oil prices, the S&P 500 index fell 1.2% on Thursday, breaking below the 50-day moving average. However, as crude oil prices retreated on Friday, market pressure eased somewhat and S&P 500 futures rebounded slightly. Strategists believe that if the conflict does not expand further, the geopolitical risk premium may gradually fade, and market focus will return to corporate earnings and economic fundamentals.

Short-term disruption from conflict, does not change market trend

As the US-Iran conflict continues to escalate, market concerns about global energy supply have increased, with international oil prices rising at one point.

As an important oil-producing country, changes in Iran’s situation could impact the global energy market. Tom Lee believes that compared to other countries, the potential impact of this conflict on the US economy is relatively limited, and might even bring certain benefits, as the US is itself one of the world’s major oil producers.

Yardeni stated that the S&P 500 index has remained relatively resilient amid increased geopolitical risks, indicating investors are gradually realizing that historical geopolitical crises typically offer buying opportunities. “This time may be no exception.” Yardeni said the current market is essentially betting that the US and Iran will eventually seek to end the conflict.

Tom Lee also believes that the market’s sharp decline in response to the conflict largely reflects uncertainty rather than deterioration in fundamentals. He noted that past periods of risk aversion have often provided buying windows, and expects this time to be similar. Fundstrat data shows that during the first US-Iran military standoff earlier this year, the S&P 500 fell about 10% but quickly rebounded afterwards.

Risk Warning and DisclaimerThe market carries risks; investments should be made cautiously. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their own circumstances. Anyone investing based on this is responsible for their own decisions. ```