Orlando Shooting: How Past Acts Of Terror Affected Stock Markets
Oman Mateen killed 50 people at an Orlando LGBT nightclub in the early hours Sunday, making it the deadliest mass shooting in U.S. history and the deadliest terrorist act since 9/11. The Islamic State of Iraq and Syria (ISIS) later announced responsibility for the act of terror.
Over the last five years, there have been multiple ISIS attack, all leading to increased trading activity in the markets. The more notable of these attacks included the March Brussels bombings, the November Paris shootings, the attack on San Bernardino and the Boston Marathon bombing.
A Look Back
The past attacks are shown below in red with S&P 500 price movement.
Five ISIS-pledged individuals coordinated three bombings at transportation stations in Brussels, killing 32 people on March 22, 2016.
The attack played a role in sending stocks down for three days, but the uptrend continued on the fourth day.
San Bernardino Attack
Rizwan Farook and Tashfeen Malik, devoted to ISIS, killed 14 in San Bernardino California on December 2, 2015.
The attack may have played a part in a slight downtrend, which could have extended into weaker investor sentiment during December and January. In the short term, the S&P 500 fell the first two days after the attack.
An estimated nine participants in the name of ISIS bombed six areas of Paris, killing 130 people on November 13, 2015.
The attacks happened after Friday's market close and didn't have much of an effect the following Monday. Although the Paris attacks were the largest of the four listed here, including Orlando, stocks rose significantly Monday.
Boston Marathon Bombings
During the Boston Marathon two brothers, Dzhokhar Tsarnaev and Tamerlan Tsarnaev killed five marathon participants, injuring 264 civilians on December 2, 2015.
The event played a role in sending stocks down that day as the attack began on 2:49 p.m. EST.
Overall, terrorist attacks generally send stocks trading down for at least the trading day closest to the event. They have a higher probability of lowering stock prices in the short term.
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