Global markets took a hit today as major stock indexes fell, and oil prices surged after Iran launched a series of missile strikes on Israel. The S&P 500, which had recently hit a record high, dropped around 0.8% in midday trading. At the same time, Treasury yields declined, reflecting a shift toward safe-haven assets like U.S. government bonds. Yields tend to drop as bond prices rise, and nervous investors often seek refuge in these ultra-safe investments during periods of heightened geopolitical tension.
Economic growth remained a focal point as the new quarter began, with fresh data on manufacturing and the jobs market coming into the spotlight. A key indicator for the manufacturing sector held steady in September but slightly missed expectations from analysts.
Here’s a snapshot of recent trading:
- Stock Indexes Declined: The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were all in the red, with the Nasdaq taking a sharper fall of around 2%.
- Oil Prices Rose: Brent crude, the global oil benchmark, climbed roughly 2.5%, as investors reacted to heightened tensions in the Middle East.
- Apple Shares Dragged Down Markets: Apple shares fell about 3.3%, contributing to the broader market downturn.
- Treasury Yields Dropped: The benchmark 10-year Treasury yield dipped, continuing its decline after dropping over half a percentage point between July and September.
- European Bonds Rallied: Government bonds across Europe saw gains after inflation in the eurozone fell below the European Central Bank’s target for the first time in over three years.
- Japanese Stocks Recovered: Japan’s Nikkei 225 rebounded 1.9% after Monday’s sell-off, while the yen continued to weaken for a second consecutive day.
- Chinese Markets Closed: Markets in mainland China were shut for a public holiday.
As the global situation unfolds, markets are bracing for continued volatility driven by both geopolitical tensions and ongoing economic data releases.
