Unexpected Industry Declines Amid the Iran War: Here's the Reason.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Barron's
- Impact of War on ETF: The State Street SPDR S&P Metals & Mining ETF has experienced a significant decline since the outbreak of war in Iran.
- Percentage Drop: The ETF dropped nearly 6% from February 27, prior to the conflict, through the following Friday, according to FactSet data.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 114.480
Low
89.00
Averages
110.85
High
125.00
Current: 114.480
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US CPI Growth Fuels Inflation Concerns Impacting Gold and Newmont Stocks
- Inflation Data Impact: The U.S. Bureau of Labor Statistics reported a 2.4% increase in the Consumer Price Index (CPI) for February, maintaining this level for two consecutive months, which has heightened market concerns about inflation, subsequently affecting gold prices and Newmont's stock performance.
- Gold Price Decline: Due to rising inflation expectations, gold prices fell by 1.2% today to $5,178 per ounce, while silver prices dropped by 5.1% to $85 per ounce, directly impacting Newmont's short-term stock performance.
- Newmont Stock Performance: Newmont Corporation's stock declined by 3.2% as of 11:30 a.m. ET on Wednesday, reflecting market concerns over its gold and silver business outlook, although analysts predict that its profits in 2029 will exceed last year's earnings by more than double.
- Investor Confidence: Despite Newmont's price-to-earnings ratio being below 19 times its historical average and a forward P/E ratio of 16 times, analysts remain optimistic about its future profitability; however, recent market volatility may affect investor purchasing decisions.
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Peruvian Stock Market Thrives Amid Global Uncertainty
- Strong Market Performance: In 2026, the S&P Peru Total Index surged 23%, with over 75% growth in the past 12 months, significantly outperforming both the S&P 500 and MSCI Emerging Markets Index, highlighting Peru's robust market amidst global uncertainty.
- Commodity-Driven Growth: With rising demand for copper and gold, Peru's economic outlook is optimistic, expecting a 29.4% increase in trade for 2026, driven by higher metal export prices and improved business confidence.
- Increased Investment Opportunities: Investors can gain exposure to the Peruvian market through the EPU ETF, which has performed well over the past three years with a fee of 0.59%, outperforming the MSCI Emerging Markets ETF in four of the last five years.
- Geopolitical Impact: Despite rising global oil prices due to the Iran War, Peru's copper and gold export prices may
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US Stocks Decline as Oil Prices Rebound Amid Middle East Tensions
- Market Weakness: The S&P 500 index fell by 0.61%, the Dow Jones Industrial Average dropped by 0.26%, and the Nasdaq 100 index decreased by 0.62%, reflecting investor concerns over Middle Eastern tensions that have driven stocks to 3.5-month lows.
- Oil Price Rebound: Crude oil prices surged over 3% as Iran escalated attacks in the Strait of Hormuz, which not only heightened inflation fears but also threatened global energy supply stability, impacting market confidence.
- Mixed Economic Data: January personal spending rose by 0.4%, surpassing expectations, while capital goods new orders remained unchanged, indicating economic recovery's fragility that could influence Federal Reserve policy decisions.
- Corporate Earnings Overview: With over 98% of S&P 500 companies reporting, 74% exceeded expectations, although overall earnings growth remains challenged, with Q4 earnings projected to rise by 8.4%, demonstrating market resilience amidst uncertainties.
See More
Unexpected Industry Declines Amid the Iran War: Here's the Reason.
- Impact of War on ETF: The State Street SPDR S&P Metals & Mining ETF has experienced a significant decline since the outbreak of war in Iran.
- Percentage Drop: The ETF dropped nearly 6% from February 27, prior to the conflict, through the following Friday, according to FactSet data.
See More
Newmont Corporation Shares Decline Amid Economic Data Pressure
- Economic Growth Slowdown: The U.S. economy's annualized growth rate for Q4 2025 was revised down to 0.7% from an initial 1.4%, indicating a significant deceleration that could negatively impact gold mining companies' profitability.
- Mixed Inflation Data: The Personal Consumption Expenditures (PCE) price index rose 2.8% year-over-year in January, while Core PCE climbed to 3.1%, suggesting persistent inflationary pressures that may influence investor demand for gold.
- Gold Price Fluctuations: Gold traded at $5,083 per ounce on Friday, down 6.20% from the January 28 peak of $5,419, reflecting the complex interplay between geopolitical tensions and cooling economic growth, potentially leading investors to reassess gold's appeal as a safe-haven asset.
- Technical Analysis Signals: Newmont's shares are currently 8.6% below their 20-day Simple Moving Average but 7% above the 100-day SMA, indicating a mix of short-term pressure within a longer-term uptrend that may affect investor confidence.
See More
US-Israel War Sparks Market Concerns Over Stagflation
- Market Volatility: The ongoing US-Israel conflict with Iran has rattled markets, pushing oil prices to $99.78 per barrel, which raises investor fears of 1970s-style stagflation that could adversely affect both equity and bond markets.
- Historical Lessons: According to Capital Economics, the S&P 500 plummeted over 40% in 1973 due to a recession coinciding with the OPEC oil crisis, serving as a cautionary tale for today's investors who must navigate potential economic downturns.
- Gold Underperformance: Despite rising oil prices, gold investors have not seen significant gains as the dollar strengthens, indicating a stark contrast to the 1973 scenario where gold thrived, prompting a reevaluation of gold's hedging capabilities in the current market.
- Small-Cap Outlook: While small-cap stocks thrived in the 1970s, analysts suggest that current market conditions have not yet experienced the necessary
See More
US CPI Growth Fuels Inflation Concerns Impacting Gold and Newmont Stocks
- Inflation Data Impact: The U.S. Bureau of Labor Statistics reported a 2.4% increase in the Consumer Price Index (CPI) for February, maintaining this level for two consecutive months, which has heightened market concerns about inflation, subsequently affecting gold prices and Newmont's stock performance.
- Gold Price Decline: Due to rising inflation expectations, gold prices fell by 1.2% today to $5,178 per ounce, while silver prices dropped by 5.1% to $85 per ounce, directly impacting Newmont's short-term stock performance.
- Newmont Stock Performance: Newmont Corporation's stock declined by 3.2% as of 11:30 a.m. ET on Wednesday, reflecting market concerns over its gold and silver business outlook, although analysts predict that its profits in 2029 will exceed last year's earnings by more than double.
- Investor Confidence: Despite Newmont's price-to-earnings ratio being below 19 times its historical average and a forward P/E ratio of 16 times, analysts remain optimistic about its future profitability; however, recent market volatility may affect investor purchasing decisions.
See More
Peruvian Stock Market Thrives Amid Global Uncertainty
- Strong Market Performance: In 2026, the S&P Peru Total Index surged 23%, with over 75% growth in the past 12 months, significantly outperforming both the S&P 500 and MSCI Emerging Markets Index, highlighting Peru's robust market amidst global uncertainty.
- Commodity-Driven Growth: With rising demand for copper and gold, Peru's economic outlook is optimistic, expecting a 29.4% increase in trade for 2026, driven by higher metal export prices and improved business confidence.
- Increased Investment Opportunities: Investors can gain exposure to the Peruvian market through the EPU ETF, which has performed well over the past three years with a fee of 0.59%, outperforming the MSCI Emerging Markets ETF in four of the last five years.
- Geopolitical Impact: Despite rising global oil prices due to the Iran War, Peru's copper and gold export prices may
See More
US Stocks Decline as Oil Prices Rebound Amid Middle East Tensions
- Market Weakness: The S&P 500 index fell by 0.61%, the Dow Jones Industrial Average dropped by 0.26%, and the Nasdaq 100 index decreased by 0.62%, reflecting investor concerns over Middle Eastern tensions that have driven stocks to 3.5-month lows.
- Oil Price Rebound: Crude oil prices surged over 3% as Iran escalated attacks in the Strait of Hormuz, which not only heightened inflation fears but also threatened global energy supply stability, impacting market confidence.
- Mixed Economic Data: January personal spending rose by 0.4%, surpassing expectations, while capital goods new orders remained unchanged, indicating economic recovery's fragility that could influence Federal Reserve policy decisions.
- Corporate Earnings Overview: With over 98% of S&P 500 companies reporting, 74% exceeded expectations, although overall earnings growth remains challenged, with Q4 earnings projected to rise by 8.4%, demonstrating market resilience amidst uncertainties.
See More
Unexpected Industry Declines Amid the Iran War: Here's the Reason.
- Impact of War on ETF: The State Street SPDR S&P Metals & Mining ETF has experienced a significant decline since the outbreak of war in Iran.
- Percentage Drop: The ETF dropped nearly 6% from February 27, prior to the conflict, through the following Friday, according to FactSet data.
See More
Newmont Corporation Shares Decline Amid Economic Data Pressure
- Economic Growth Slowdown: The U.S. economy's annualized growth rate for Q4 2025 was revised down to 0.7% from an initial 1.4%, indicating a significant deceleration that could negatively impact gold mining companies' profitability.
- Mixed Inflation Data: The Personal Consumption Expenditures (PCE) price index rose 2.8% year-over-year in January, while Core PCE climbed to 3.1%, suggesting persistent inflationary pressures that may influence investor demand for gold.
- Gold Price Fluctuations: Gold traded at $5,083 per ounce on Friday, down 6.20% from the January 28 peak of $5,419, reflecting the complex interplay between geopolitical tensions and cooling economic growth, potentially leading investors to reassess gold's appeal as a safe-haven asset.
- Technical Analysis Signals: Newmont's shares are currently 8.6% below their 20-day Simple Moving Average but 7% above the 100-day SMA, indicating a mix of short-term pressure within a longer-term uptrend that may affect investor confidence.
See More
US-Israel War Sparks Market Concerns Over Stagflation
- Market Volatility: The ongoing US-Israel conflict with Iran has rattled markets, pushing oil prices to $99.78 per barrel, which raises investor fears of 1970s-style stagflation that could adversely affect both equity and bond markets.
- Historical Lessons: According to Capital Economics, the S&P 500 plummeted over 40% in 1973 due to a recession coinciding with the OPEC oil crisis, serving as a cautionary tale for today's investors who must navigate potential economic downturns.
- Gold Underperformance: Despite rising oil prices, gold investors have not seen significant gains as the dollar strengthens, indicating a stark contrast to the 1973 scenario where gold thrived, prompting a reevaluation of gold's hedging capabilities in the current market.
- Small-Cap Outlook: While small-cap stocks thrived in the 1970s, analysts suggest that current market conditions have not yet experienced the necessary
See More
