Iran political turmoil fuels unease…tech and financials slide as stocks extend losses for a second day [New York Market Briefing]

U.S. stocks ended lower amid mounting concerns over potential U.S. military intervention in Iran’s political turmoil. Tech and financial shares in particular underperformed.

On the 14th (local time), the Dow Jones Industrial Average fell 42.36 points (0.09%) from the previous session to close at 49,149.63 on the New York Stock Exchange.

The S&P 500 slid 37.14 points (0.53%) to 6,926.60, while the Nasdaq Composite, weighted toward tech, dropped 238.12 points (1.00%) to 23,471.75.

Shortly after the opening bell, major indexes sank sharply on speculation that a U.S. airstrike on Iran was imminent.

According to foreign media reports, there was speculation that the United States is highly likely to respond with military intervention in Iran’s political situation, with intervention potentially beginning within 24 hours.

U.S. broadcaster CBS, citing overseas sources, reported that the current death toll related to protests in Iran is estimated at around 12,000 to 20,000.

However, sentiment calmed later in the afternoon after U.S. President Donald Trump said, “I heard that the killing has stopped in Iran,” adding, “Tensions between the United States and Iran remain high, but for now I believe there is no plan for mass executions.”

Bank stocks, which have been reporting earnings one after another this week, showed a weak price trend.

Wells Fargo fell 4.61% after its fourth-quarter results for last year fell short of market expectations.

Citigroup and Bank of America posted results that beat forecasts, but failed to clear expectations by a wide margin, sliding 3.34% and 3.78%, respectively.

Most major tech companies declined.

Nvidia fell 1.44%, and Microsoft (MS), Amazon and Meta all slid in the 2% range.

By contrast, energy companies such as Exxon Mobil and Chevron extended gains. Expectations of a windfall grew as oil prices rose on heightened tensions involving Iran.

Economic indicators improved. November retail sales, a key gauge of U.S. consumption, came in above expectations, improving sharply.

According to the U.S. Department of Commerce, U.S. retail sales in November last year totaled $735.9 billion on a seasonally adjusted basis, up 0.6% from the previous month. That topped the market forecast of a 0.4% increase.

The producer price index (PPI), which tracks U.S. wholesale inflation, matched expectations and showed a moderate uptrend.

According to the Department of Labor, November PPI last year rose 0.2% month on month on a seasonally adjusted basis, in line with forecasts.

By Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com