Wall Street Plunges Across the Board as US-Iran Tensions Send Oil Prices Soaring

Wall Street.

Major US stock indices failed to break their weak trend for the second consecutive day.

The Nasdaq fell by the 0.3% range, while the S&P 500 dropped by more than 0.5%.

By sector, consumer staples and communication services both fell by the 1% range.

As the ceasefire deadline between the US and Iran expired and subsequent negotiations stalled, international oil prices surged, dragging down the overall New York stock market.

US President Trump drew a line by stating there was no intention to extend negotiations, and Iran similarly signaled a hardline response, heightening concerns over disruptions in crude oil supplies.

West Texas Intermediate and Brent crude both rose by the 2% range.

The rise in oil prices immediately struck the bond market.

The yield on the 30-year US Treasury bond surpassed 5.3% for the first time since 2007, soaring to its highest level in 19 years.

As oil prices and interest rates surged together, caution grew that the Federal Reserve, as the central bank, would not easily lower interest rates due to inflation concerns.

Concerns over financial distress for corporations and households facing heavier loan interest burdens ultimately acted as heavy downward pressure on the stock market.

Meanwhile, amid these external negative factors, Micron Technology rebounded by the 4% range, defending the indices from further declines.

While closely monitoring short-term geopolitical volatility, the market is also paying attention to the July FOMC minutes to be released on the 19th and the earnings reports of major large-scale retailers.
※ Please note: This article was translated by AI and may contain errors.