The Dow Jones gave up nearly 600 points from the highs of the session to end with losses of over 300 points. The S&P 500 fell 70 points from the highs, while the Nasdaq gave up gains of over 1%. Both the tech-heavy indices also ended below the flat line.
Indices had opened higher courtesy of a rebound in chip stocks and reports of Iran receiving peace proposals from mediators after clashes continued in West Asia. However, no clarity has yet emerged on what those proposals entail and how both parties will react to them.
US President Donald Trump also vowed that every time Iran killed an American soldier, they would “pay for that many times over” in a Truth Social post. A US official said that Trump is currently busy punishing Iran over attacking ships in the Strait of Hormuz and the attacks will continue till the President choses a different course of action.
The US Central Command launched a 10th day of strikes on Iran starting 4 PM Eastern Time, according to a post on “X”. The US official also added that diplomatic efforts to end the war continued.
Iran-backed Houthis in Yemen announced a maritime blockade of Saudi ships in the region. Saudi has chosen this alternate Red Sea route for its crude exports, bypassing the Strait of Hormuz during the war period. These exports rose to 4.19 million barrels per day as of last month. Saudi has also responded by saying that they will take the necessary steps to protect its ships in the Bab el-Mandeb strait.
Brent crude oil prices continued to trade in the $88 to $90 a barrel range, while West Texas Intermediate (WTI) traded around $82.5 a barrel.
Beyond the war, the Trump Administration also threatened Canada with 50% tariffs on certain goods, that excluded the crucial potash, critical minerals, energy and fish. The tariffs will take effect in the next 30 days on items such as milk, American Alcohol, cars and dairy. Goods that are compliant under the USMCA will also not be given an exemption.
Fears of higher oil prices and inflation worries took the US 10-year bond yield back to the 4.6% mark, while the US Dollar index is back at the 101 level.
Companies such as Novartis AG, 3M, General Motors, Hasbro will be announcing their quarterly results later today, while developments in West Asia continue to remain the focal point.
