Market Jitters: Wall Street Dips Amid Middle East Tensions and Fed Uncertainty
Major Wall Street indexes closed lower as tensions in the Middle East and uncertainty over Fed policies affected market sentiment. Oil prices fell while sanctions against Iran were imposed. U.S. dollar and bond demand rose amid cautious market behavior. European ministers urged peaceful resolutions as geopolitical tensions persisted.
In a tumultuous session, major Wall Street indexes closed lower on Friday as investors grappled with looming geopolitical tensions between Israel and Iran, compounded by uncertainty regarding U.S. Fed policy. President Trump refrained from immediate military action, prompting a decline in oil prices and nervousness in the markets.
The S&P 500 dropped by 0.21%, while the Nasdaq Composite decreased by 0.49%. Conversely, the Dow Jones Industrial Average managed a modest gain, closing 38.47 points higher at 42,210.13. Following an initial positive start, stocks wavered as investors navigated the complex geopolitical landscape.
Amid these tensions, Brent crude futures fell 2.3% to settle at $77.01 per barrel, though it saw a 3.6% weekly rise. Federal Reserve policymakers also added to the uncertain climate with conflicting views on future interest rate cuts, reflecting a split in economic policy directions. As a result, U.S. Treasury yields dipped, while the U.S. dollar strengthened against a basket of currencies.
(With inputs from agencies.)
Google News