In a new development to the Iran war, President Donald Trump has delayed potential U.S. strikes on Iranian energy infrastructure and power facilities for five days, citing ongoing discussions aimed at ending the 24-day conflict, per Bloomberg, as quoted on Yahoo Finance.
In a social media post, Trump described the talks as “very good and productive,” suggesting a possible path toward a “complete and total resolution” of hostilities in the Middle East. However, he clarified that any pause in escalation depends entirely on the success of these negotiations.
Contrary to this claim, Iran’s semi-official Fars news agency reported that Tehran has had no direct or indirect communication with Trump, raising doubts about the status of the talks, as mentioned in the above source.
Should You Buy S&P 500 ETFs in New-Found Optimism?
The S&P 500 has lost about 3% over the past month (as of March 20, 2026). JPMorgan Chase & Co. strategists have recently lowered their year-end target for the S&P 500 Index, warning that geopolitical risks are limiting upside for equities.
A team led by Fabio Bassi reduced the forecast to 7,200 from 7,500, citing a potential oil supply shock linked to disruptions in the Strait of Hormuz, per Bloomberg, as quoted on Yahoo Finance. Despite the downgrade, JPMorgan’s revised target still suggests an 11% upside from the current levels by the year-end.
Oil Shock Threatens Growth and Earnings
According to the strategists, prolonged geopolitical tensions and elevated energy prices could weaken global growth while keeping inflation higher for longer.
They noted that crude oil prices around $110 per barrel through year-end could slash S&P 500 earnings per share estimates by 2-5%, with greater downside risk if prices continue to rise, as quoted on the above-mentioned Bloomberg source.
Investors Urged to Stay Hedged
JPMorgan continues to advise investors to remain invested in equities but maintain downside hedges. Historically, four out of five major oil shocks since the 1970s have resulted in recessions, as quoted on the above-mentioned source.
ETFs in Focus
Against this backdrop, we highlight below a few exchange-traded funds (ETFs) that could be tapped now.
Invesco S&P 500 Downside Hedged ETF PHDG
The Invesco S&P 500 Downside Hedged ETF is an actively managed exchange-traded fund that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. The fund charges 39 bps in fees and yields 2.07% annually.
NEOS Nasdaq-100 Hedged Equity Income ETF QQQH
The NEOS Nasdaq-100 Hedged Equity Income ETF seeks high monthly income in a tax-efficient manner with a measure of downside protection. The fund charges 68 bps in fees and yields 8.42% annually.
Invesco QQQ Income Advantage ETF QQA
The Invesco QQQ Income Advantage ETF seeks to provide investors exposure to the Nasdaq-100 Index combined with an active option income overlay for income generation, downside protection and upside participation. The fund charges 29 bps in fees and yields 10.16% annually.
FT Vest Laddered Buffer ETF BUFR
The FT Vest Laddered Buffer ETF seeks to provide investors with capital appreciation by providing investors with U.S. large-cap equity market exposure while attempting to limit downside risk through a laddered portfolio of 12 FT Vest U.S. Equity Buffer ETFs. The fund charges 95 bps in fees.
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Invesco S&P 500 Downside Hedged ETF (PHDG): ETF Research Reports
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This article originally published on Zacks Investment Research (zacks.com).