Value stocks, once considered a safe haven from this year's stock-market turbulence, are now at risk due to the escalating conflict in the Middle East.
The Russell 1000 Value Index has fallen 4.3% since late February, with shares of Nike, Lennar, and Southwest Airlines declining by 29%, 24%, and 24%, respectively.
The conflict has sent oil prices higher, sparking fears of an economic downturn and threatening the gains made by value stocks such as Sandisk, up 196% this year, Moderna, up 67%, and Acadia Healthcare, which has added 69%.
Analysts warn that a prolonged war could set off an economic downturn, hurting both value and growth stocks, although most economists do not currently expect a recession.
Investors will get a better look at the health of the economy from fresh manufacturing data and a new read on inflation, as well as company earnings reports, including results from Delta Air Lines and Constellation Brands.
