Markets opened weaker and dow futures fell as U.S. stocks closed lower amid rising oil prices and escalating conflict in the Middle East, according to reporting by Sean Conlon.
The three leading U.S. indexes finished the session with losses, as the S&P 500 dropped 0.94 percent to settle at 6,816.63, the Nasdaq Composite declined 1.02 percent to 22,516.69, and the Dow Jones Industrial Average shed 403.51 points to 48,501.27, as reported by Sean Conlon.
Investors moved away from riskier sectors, sending small caps and materials sharply lower, with the Russell 2000 sliding nearly 2 percent in midday trading and the S&P 500 Materials group down about 4.5 percent, according to the same reporting.
Volatility climbed as the CBOE Volatility Index crossed 25 and jumped to 25.16, reflecting elevated investor concern over how long the U.S.-Iran conflict might last, the market coverage noted.
Major individual movers included Albemarle which fell around 7 percent and was one of the worst performers in the S&P 500, memory and semiconductor equipment names which dropped more than 6 to 9 percent, and crypto-linked Robinhood which fell about 3 percent amid weaker digital asset volumes, reporting by Sean Conlon and Liz Napolitano said.
Markets Shift With Oil Surges and Global Reactions
Oil rallied sharply as missile strikes continued and Iran threatened to close the Strait of Hormuz, driving Brent futures up to about 81.96 per barrel and West Texas Intermediate near 75.55 per barrel, as reported by Chloe Taylor.
Higher energy costs prompted retail investors to pour money into energy funds, with VandaTrack finding a record $49 million net inflow into the State Street Energy Select Sector SPDR ETF on Monday, surpassing the prior record from March 2022, according to Alex Harring citing Vanda analyst Viraj Patel.
Currency and international markets also reacted, the U.S. dollar index rose nearly 1 percent as investors sought liquidity in dollars, while South Korea suffered steep losses with its Kospi tumbling and heavyweight memory chip stocks down sharply, the market report said.
Corporate headlines added to the market mix, with Best Buy and Target reporting mixed results yet some gains, MongoDB shares plunging after weaker forward guidance, and Pinterest receiving a vote of confidence from a $1 billion investment by Elliott Management, as covered in the compiled reporting.
Overall, market breadth was poor with many more decliners than advancers on the New York Stock Exchange, and analysts warned that sustained conflict could prolong commodity dislocations and keep volatility elevated, according to the aggregated coverage.
