As of today, major U.S. stock indexes are experiencing declines, with the S&P 500 down by 0.75%, the Dow Jones Industrial Average down by 0.21%, and the Nasdaq 100 down by 1.18%. This downturn follows the first $100+ oil settlement since 2022, amid ongoing supply chain risks impacting the energy sector. Crude oil prices have risen more than 2% to a three-week high, fueled by attacks on shipping routes, especially in the Strait of Hormuz.
U.S. Treasury yields retreated following remarks from Federal Reserve Chair Jerome Powell regarding limited options to address rising energy costs. Meanwhile, the Dallas Fed manufacturing activity survey reported a decline from -0.4 to -0.2, missing expectations. With geopolitical tensions escalating and the Pentagon preparing for prolonged military operations in Iran, Goldman Sachs warns that crude prices may exceed previous records if shipping disruptions persist.
In overseas markets, the Euro Stoxx 50 is up 0.28%, while Japan’s Nikkei Index fell to a three-month low, down by 2.79%. Economic indicators from Europe also showed volatility, with the Eurozone economic sentiment index dropping to 96.6, a six-month low.
