US Strike On Iran Nixes ‘Black Swan’ Risk, Says Analyst — Flags 6 Tech Stocks To Scoop Up On Weakness

Ives is of the view that a weakened Iran with no nuclear capacity would remove the biggest threat to the Middle East and Israel.

U.S. stock futures fell following the U.S. bombing of Iranian nuclear sites and reports of Iran retaliating. A tech bull and Wedbush analyst Daniel Ives, however, viewed the development as a positive for the market. 

In a note released Sunday, Ives said his conversations with tech investors showed that the market factored in the U.S. attack. 

“It was viewed [that] this US strike was a matter of when, not if the U.S. was going to do this B-2 attack, and in turn this ultimately removes an overhang on the market in our view after this successful strike,” the analyst said.

The major U.S. index futures fell moderately in reaction to the recent developments. The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY),exchange-traded funds that track the Nasdaq 100 and the S&P 500 indices, have climbed 3.2% and 2%, respectively, so far this year.

The Technology Select Sector SPDR Fund (XLK) has gained 3.6%, while the chip-focused iShares Semiconductor ETF (SOXX) has advanced a steeper 4.8%

The Magnificent Seven mega-cap tech stocks have underperformed, as reflected by the 2.9% pullback by the Roundhill Magnificent Seven ETF (MAGS).

Ives believes that a weakened Iran with no nuclear capacity would remove the biggest threat to the Middle East and Israel. According to the analyst, this would be viewed as a positive for the market and tech stocks in particular.

The Wedbush analyst also highlighted that Saudi Arabia and the UAE looked to aggressively embrace the artificial intelligence (AI) revolution following President Trump Donald’s trip to the region in May.

“The biggest threat to the region and the potential ‘black swan event’ was Iran and its nuclear program...and now that threat is gone,” he said.

The analyst opined that the conflict would take some time to settle, but the market will view the worst as now in the rearview mirror, with investors looking forward. 

He said, “There could naturally be some more volatility and headline risk this week....but we would encourage investors to buy our tech winners and AI Revolution stalwarts such as Nvidia, Palantir, Microsoft, Amazon, Oracle, Tesla on any weakness from geopolitical headlines.”

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