U.S. markets tumble as oil prices rise and Iran negotiation doubts grow, Dow down over 450 points
The S&P 500 fell on Thursday due to rising oil prices and geopolitical tensions in the Middle East.The index declined 1.74%, closing at 6,477.16, while the Nasdaq Composite decreased 2.38% to 21,408.08, entering correction territory. The Dow Jones Industrial Average dropped 469.38 points, or 1.01%, finishing at 45,960.11.
Oil prices rise
Crude oil prices surged on Thursday, impacting equity markets negatively.
Brent futures increased 5.66%, settling at $108.01 per barrel, while West Texas Intermediate futures rose 4.61% to $94.48.
Yields on both the 10-year Treasury and 2-year Treasury bonds experienced an uptick during this trading session.
President Donald Trump commented on the rising oil prices, stating he expects them to decrease soon.
He warned Iran to take negotiations seriously, signalling consequences for any lack of progress.
Amid these tensions, Iran’s foreign minister indicated that the country is reviewing a U.S. proposal to end the ongoing conflict but has no plans to negotiate.
Gulf countries condemned Iran’s attacks from Iraqi territory, stating they are prepared to defend their infrastructure.
They urged Iraq to take action to prevent further incidents against neighbouring countries.
Market analysts indicate that despite negative news, investors remain optimistic about the market’s upward trajectory.
Jed Ellerbroek from Argent Capital Management noted complacency amid bad news, suggesting investors want market growth.
Tobin Marcus from Wolfe Research highlighted the belief that market movements suggest doubts about Iran’s sincerity in negotiations.
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