On October 6, 2023, the S&P 500 Index dropped by 1.22%, the Dow Jones Industrial Average fell by 1.32%, and the Nasdaq 100 Index decreased by 1.46% amid rising crude oil prices. West Texas Intermediate (WTI) crude surged over 9% after Iraq suspended oil terminal operations following an Iranian attack on two tankers, prompting further instability in the Middle East.
Concerns over credit quality also pressured markets as Morgan Stanley and Cliffwater LLC limited withdrawals from their private credit funds due to high redemption requests. In economic updates, U.S. weekly jobless claims fell by 1,000 to 213,000, and January housing starts unexpectedly rose by 7.2% to an 11-month high of 1.487 million.
The International Energy Agency indicated that the ongoing conflict is disrupting 7.5% of global oil supply, projecting a decrease of 8 million barrels per day this month. The situation heightened fears of inflation, with the 10-year Treasury yield climbing to 4.243% amid rising oil prices.
