US attacks on Iran and ensuing flight from risk assets caused declines across global stock indexes on Wall Street, with the Dow Jones down 0.64 percent, the S&P 500 down 0.41 percent, and Nasdaq down 0.40 percent. The Dow Jones stood at 53,214.27 points, the S&P 500 at 7,680.57 points, and Nasdaq at 26,295.64 points.
Energy stocks diverge
Chevron rose 2.74 percent as oil prices climbed and investors bet on expanded operations in Venezuela. Energy equities benefited from geopolitical tensions pushing crude higher, even as broader equities retreated.
Other sectors suffered. Investors moved away from riskier assets amid the heightened geopolitical volatility. Traders reassessed positions across holdings vulnerable to economic slowdown or further unrest.
Week ahead uncertain
Chris Larkin at E*Trade from Morgan Stanley told Bloomberg traders remain alert to geopolitical volatility as well as possible seasonal volatility, and noted it will be interesting to see what momentum from last week’s market could carry over to this week. Unexpectedly strong labor market data could be interpreted as bad news, as it could reinforce expectations for an interest rate hike, he added.
The broader market now watches for fresh developments on the geopolitical front and for US economic data that could shift rate expectations.
