October has big shoes to fill after September, when the S&P 500 recorded its best performance in 11 years, defying its historical trend as the weakest month for the market. Strong earnings growth and interest rate cuts fueled a 2% rise. However, high stock valuations and potential economic concerns still pose risks for investors. Adding to the market's volatility, Iran launched a 200-missile attack on Israel on Tuesday, marking its second direct attack this year. Most missiles were shot down by the Israelis with some support from the U.S. military. Around 30 struck an Israeli air base and ​one struck an empty school. Israeli leaders have stated they will respond with force and while the U.S. attempts to curtail the scope of the retaliation through diplomacy, many are speculating that Israel will attack Iran's oil refineries to curtail their ability to generate funding.

‍

Former President Trump didn't waste any time seizing the events as an opportunity to convince U.S. voters that the reason Iran has been funneling money into their military and military proxy groups like Hezbollah, Hamas, and the Houthis is because the Biden administration unfroze billions of dollars in Iranian assets. The Biden administration has stated the money can only go to humanitarian causes and has not encouraged the 170 attacks on U.S. military bases by Iran-backed militias.

‍

Harris's lead over Trump has narrowed to nearly 2.5% nationally. And a recent poll shows Trump leading Harris significantly on voter beliefs of which candidate is strongest on foreign policy. The global turmoil may be chipping away at Harris' slight lead. The stakes are high for markets. Clean energy and EV stocks like First Solar and Tesla had been rising since Harris took a lead in the polls and will likely selloff if Trump is elected as he does not support federal subsidies on these industries.

‍