Summary
- Amid fears of an escalating Middle East war, stocks fell and oil prices rose.
- West Texas Intermediate (WTI) climbed 4%% to top $117 a barrel, while Bitcoin and Ether prices fell.
- Wells Fargo Investment Institute and Citadel Securities said weakening investor sentiment and net selling by retail investors could signal a short-term rebound in the stock market.
Forecast Trend Report by Period
Trump Presses Iran on Ceasefire, Threatens “Destruction of a Civilization”
Stocks fell and oil prices rose as fears mounted that the war in the Middle East could escalate ahead of a US deadline for Iran to agree to a ceasefire.
As of 10:20 a.m. Eastern time, the S&P 500 was down 0.76%, while the Dow Jones Industrial Average had lost 0.54%. The tech-heavy Nasdaq fell 1.2%.
West Texas Intermediate crude rose 4% to above $117 a barrel after the US attacked military facilities on Kharg Island, a key hub for Iranian energy exports. Brent futures added 0.6% to $110.5 a barrel.
The yield on the 10-year US Treasury was little changed at 4.33%. Bitcoin fell 1.9% to $68,501, while Ether dropped 3% to $2,084.95.
Investor sentiment weakened as concerns grew that an escalation in the conflict could worsen a global fuel shortage and weigh on the economy.
President Donald Trump repeated threats of a large-scale bombing campaign and pressed Iran to reach a deal before an 8 p.m. deadline, saying “an entire civilization will perish tonight” if no agreement is reached.
He also signaled the possibility of an agreement, saying new Iranian leaders with a “different, wiser, and less radical mindset” could strike a deal.
Vice President JD Vance, speaking in Budapest, said he was confident Iran would respond by then.
Paul Christopher of Wells Fargo Investment Institute said investors would likely remain on edge and markets would probably struggle to find direction until the outcome becomes clearer later in the evening.
Strategists at Citadel Securities said weakening retail-investor sentiment could signal a short-term rebound in stocks.
Retail investors have traditionally been among the most optimistic groups in the stock market. But Citadel Securities said clients on its platform were net sellers of US stocks and options last week. That has happened only 18 times since January 2020, the firm said. The shift followed weeks of stock-market volatility triggered by the war with Iran.
John Williams, president of the Federal Reserve Bank of New York, said in an interview with Bloomberg TV that higher energy costs from the war with Iran would lift headline inflation, but the outlook for core prices had not changed much.
Kim Jung-a, contributing reporter, Hankyung.com, kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
