Skip to Content

US stocks tumble as investors awaits Israel’s response to Iran’s attack

By Laura He and Anna Cooban, CNN

Hong Kong/London (CNN) — US stocks were rocked by hot economic data and worries about an escalation of tensions in the Middle East, with the Dow swinging through 600 points Monday.

The Dow fell 248 points, or 0.7%, giving up earlier gains. The S&P 500 fell 1.2% and the Nasdaq Composite lost 1.8%.

CNN’s Fear & Greed Index, which measures seven barometers of market sentiment, fell to a “fear” reading for the first time since November.

Oil prices cooled on Monday, despite Iran launching an unprecedented attack on Israel over the weekend. The price of Brent crude fell to settle at $90.10, while US WTI crude dropped to settle at $85.41 a barrel on Monday. Traders are waiting to see what Israel does next.

That comes after oil prices hit their highest levels since October on Friday in anticipation of retaliation by Tehran for a suspected Israeli strike on an Iranian diplomatic complex in Syria. US crude futures have risen roughly 19% this year. Brent crude, the global oil benchmark, has surged about 17%.

Elsewhere, Treasury yields spiked after US retail sales data showed that spending rose in March for the second-straight month, underscoring the US consumer’s resilience despite interest rates perched at a 23-year high. Investors have worried in recent weeks that inflation remains too sticky and the economy too strong for the Federal Reserve to cut interest rates anytime soon.

Europe’s benchmark Stoxx 600 index ticked up 0.1%, while Germany’s DAX and France’s CAC 40 gained 0.5% and 0.4% respectively. London’s FTSE 100 fell 0.4%.

Hong Kong’s Hang Seng Index closed down 0.7%. Japan’s Nikkei 225 closed 0.7% lower, but China’s Shanghai Composite Index finished 1.3% higher.

Gold futures rose to settle at roughly $2,383 a troy ounce on Monday. They are up 16% this year.

The Paris-based International Energy Agency, which monitors oil markets on behalf of developed economies, said Monday that Iran’s weekend air attacks on Israeli military facilities had raised the risk of increased volatility in oil markets and provided a fresh reminder of the importance of oil security.

Analysts at ANZ said in a research report that the attack would raise concerns about possible disruption to global oil supply.

“The extent of that risk will likely be determined by the reaction of Israel’s government,” the analysts added.

Israel’s war cabinet met for several hours Monday to discuss its response, an Israeli official told CNN.

The Middle East was plunged into uncharted waters after Iran launched scores of missiles toward Israel late Saturday. Israel’s military said “99%” of the more than 300 projectiles were intercepted by Israel and its partners.

Before Iran’s attack, US stocks ended Friday sharply lower, as Wall Street worried about escalating tension in the Middle East. But US stocks started Monday cautiously higher after US President Joe Biden and his national security team, seeking to contain the risk of a wider regional war, told their counterparts the US will not participate in any counter-strike against Iran.

As stocks settle after the trading day, levels might change slightly.

The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

Krystal Hur contributed to this story.

Article Topic Follows: CNN - Money

Jump to comments ↓

CNN Newsource

BE PART OF THE CONVERSATION

KION 46 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content