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A Snapshot of Global Reactions to Geopolitical Tensions
In the wake of Israel's limited strike against Iran, global markets have experienced significant volatility. Here's an in-depth look at how various indices and commodities have responded to these unfolding events.
Dow Jones Industrial Average
The Dow Jones futures indicated a potential break in the power trend, with a sharp fall early Friday, alongside S&P 500 futures and Nasdaq futures. This suggests a negative impact due to the tensions, with investors showing concern over the stability of the region.
S&P 500
The S&P 500 saw a decline, with futures dropping 1.4%. Within the index, individual stocks reacted differently. For instance, Las Vegas Sands experienced an 8.7% drop despite positive earnings, hinting at investor anxiety over competition in Macau.
Nasdaq Composite
Tech-heavy Nasdaq futures fell by 1.7%, reflecting the broader market's apprehension. The tech sector, sensitive to supply chain disruptions, is particularly vulnerable to geopolitical risks.
Oil Prices
WTI Crude oil futures rose sharply by 4.2% to $86.18, a direct response to the potential threat to oil supply stability in the Middle East.
Asian Markets
Japan's Nikkei index tumbled by 3.5%, while India's BSE Sensex plunged 600 points to below 72,000, and the Nifty50 approached 21,800. These figures represent the bearish trend influenced by the Iran-Israel conflict and global cues.
Safe-Haven Assets
Investors flocked to safe-haven assets such as U.S. Treasuries, the yen, and the Swiss franc, which typically see a rise during times of uncertainty.
BSE Sensex: India's BSE Sensex plunged 600 points to below the 72,000 level, while the Nifty50 approached 21,800 as the bearish trend continued, influenced by the Iran-Israel conflict and global cues.
