The S&P 500 Index rose 0.42%, the Dow Jones Industrial Average increased by 0.64%, and the Nasdaq 100 Index climbed 0.32% as of today. Falling 10-year Treasury note yields, which fell 8 basis points to 4.35%, contributed to the uptick amid concerns over potential economic disruptions due to the ongoing conflict in the Middle East. Crude oil prices also surged over 1% to reach a three-week high, fueled by concerns regarding supply disruptions through the Strait of Hormuz, which is critical for global oil flow.
US and Israeli forces escalated military operations in Iran this week as the conflict entered its fifth week. Approximately 3,500 US sailors and Marines have been deployed to the region, with reports indicating that the Pentagon is preparing for extended ground operations. Goldman Sachs warned that crude oil prices could exceed $150 per barrel if disruptions continue. The International Energy Agency highlighted that over 40 energy sites in the region suffered significant damage, potentially extending supply chain disruptions.
In the markets, software and cybersecurity stocks rebounded, with shares of Atlassian and Palo Alto Networks increasing by more than 4%. United Therapeutics reported a more than 14% stock increase following positive clinical trial results for its drug Tyvasco. Conversely, Sysco’s stock dropped more than 12% after announcing a major acquisition deal.
