On Tuesday, the S&P 500 Index closed down 0.37%, the Dow Jones Industrial Average fell 0.18%, and the Nasdaq 100 Index dropped 0.77% amid escalating tensions in the Iran conflict. WTI crude oil prices surged over 4%, while the 10-year Treasury note yield rose to 4.38%. The U.S. is considering deploying about 3,000 troops from the 82nd Airborne Division to the region, further heightening market anxiety.
As Iran launched missile strikes against several cities in Israel and U.S. bases, Saudi Arabia permitted U.S. military access to King Fahd Air Base, with geopolitical developments encouraging volatility in global oil supply. The International Energy Agency reported that the conflict could disrupt up to 8 million barrels per day this month, with Goldman Sachs warning that crude prices could exceed $150 per barrel if supply remains strained.
Despite the negative market performance, recent U.S. economic data provided some relief, showing a nonfarm productivity revision to 1.8% alongside an unexpected rise in the S&P manufacturing PMI to 52.4. This data contrasts with the anticipated decline, suggesting potential resilience in the U.S. economy amid geopolitical turmoil.
