Stocks Fall Amid Renewed US-Iran Hostilities
Global stock markets declined on renewed tensions between the United States and Iran, following an attack by Iranian forces targeting a U.S. base in Jordan. Crude oil prices surged over 6%, while bond yields rose as investors braced for potential disruptions to energy supplies through the Strait of Hormuz. The S&P 500 fell -0.18%, the Dow Jones dropped -0.85%, and the Nasdaq Composite declined by -0.23%. Futures contracts also pointed toward further losses ahead. Markets are closely watching this week’s Federal Reserve FOMC meeting, with a rate hike expected to remain on hold but still priced in at 36% probability for a +25 bp increase. Earnings reports from major tech firms like Microsoft and Meta Platforms will be scrutinized as investors assess the financial viability of AI investments. Despite geopolitical risks, Q2 earnings have so far exceeded expectations with 86% of S&P 500 companies beating forecasts. However, rising interest rates and mortgage costs are adding pressure to consumer spending.
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Topics: bond yields rise crude oil surge stock market decline US-Iran tensions