The S&P 500 Index is down 0.75%, with the Dow Jones Industrials falling 0.46%, and the Nasdaq 100 declining 1.22%. This marks a week-low for the Nasdaq, driven by weakness in semiconductor stocks and rising geopolitical risks related to unrest in Iran. Notably, the U.S. has advised some personnel to leave the Al Udeid Air base in Qatar following threats from Iran.
In addition, U.S. economic data showed November producer prices rose 3.0% year-on-year, surpassing expectations of 2.7%, alongside a retail sales increase of 0.6% month-on-month, against a projected 0.5%. As the market braces for potential disruptions from the Federal Reserve’s next meeting, current odds for a rate cut have dropped to 3%.
On the commodities front, WTI crude oil has surged to a 2.5-month high amid these geopolitical tensions, while precious metals are also experiencing gains as investors seek safe-haven assets. The heightened energy sector has seen companies, such as APA Corp and Devon Energy, increase by more than 3%.
