On Monday, the S&P 500 Index closed down 0.39%, and the Nasdaq 100 Index fell by 0.78%, both reaching their lowest levels in over seven months. In contrast, the Dow Jones Industrial Average rose by 0.11%. These mixed outcomes reflect growing concerns over the protracted conflict in the Middle East, which is impacting economic outlook and stock performance.
The June E-mini S&P futures dropped 0.43%, while the 10-year T-note yield decreased by 8 basis points to 4.34%, following Fed Chair Powell’s comments on inflation expectations. Crude oil prices surged over 3% to a three-week high, driven by disruptions in the Strait of Hormuz, where Iran’s military actions have affected oil flows. Goldman Sachs cautions that prices could exceed $150 per barrel if disruptions persist through March.
The Dallas Fed manufacturing survey showed a decline of 0.4, falling to -0.2, below the expected increase to 2.0. The turmoil in the region is causing significant shifts in U.S. and global markets, with international stock indices variably reacting; Euro Stoxx 50 increased by 0.65% while Japan’s Nikkei declined by 2.79%.
