“Over the past few weeks, the United States has escalated military actions in the Middle East to combat ISIS and other terrorist groups,” FactSet’s John Butters writes. “During this same time frame, the value of the S&P 500 has declined by 2.1% “
However, investors in US stocks shouldn’t be too worried about the crises in the Middle East.
The most recent data from FactSet on revenues for S&P 500 companies that operate worldwide shows that the Middle East accounts for a measly 1.9% of revenues. It tops only the Oceania region (Australia, New Zealand, and the Pacific Islands) and Africa, which account for 1.5% and 0.8% of revenues respectively.
Industrials, information technology and energy are the sectors that bring in the most money from the region.
Some companies including Nike have announced Q3 results, but the peak of earnings season is still about two weeks away.
This chart from FactSet’s Butters shows just how little revenues from the Middle East are compared to the rest of the world.