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Trump rejects war‑no‑new pledge, markets brace for volatility

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In a taped interview for “Meet The Press,” President Trump told host Kristen Welker he never promised “no new wars,” a centerpiece of his 2024 campaign. He argued, “Why would I have built the strongest military in the world?” The remark comes as investors watch the White House’s foreign‑policy tone for clues on defense spending and geopolitical risk.

The denial follows three months of U.S. involvement in the U.S.-Israeli war in Iran, which Trump described as “not an endless war.” Market analysts note that any escalation could lift defense contractor earnings while spiking oil prices, pressuring airline and consumer‑discretionary sectors. Traders thus weigh the president’s rhetoric against real‑time conflict indicators.

Investors should brace for volatility as the administration’s stance may reshape budget allocations for the Pentagon and influence global energy flows. With no clear policy shift announced, markets will react to any concrete moves on troop deployments or sanctions, keeping defense stocks and commodities in focus.

Wall Street's reaction already showed mixed signals; defense ETFs rose modestly, while airline indexes slipped amid uncertainty. Analysts warn that if the president continues to downplay the war, congressional oversight of defense budgets could tighten, potentially throttling the sector's growth. The immediate takeaway: market participants must monitor policy cues as the conflict evolves.