Three Major Indices Weaken Amid Possibility of Direct US Military Intervention in Iran [New York Stock Market Briefing]
Summary
- It was reported that all three major stock indices in New York fell due to concerns over the possibility of direct US military intervention in Iran.
- There were expectations that if the US intervenes militarily in Iran, geopolitical instability may persist in the crude oil market.
- It was noted that all major tech companies with a market capitalization over $1 trillion and solar-related stocks experienced sharp declines.
All three major stock indices on the New York Stock Exchange recorded declines. As Donald Trump, the President of the United States, discussed the possibility of military intervention in Iran, risk-averse sentiment spread in the stock market.
On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) closed at 42,215.80, down 299.29 points (0.7%) from the previous day. The S&P 500 Index ended the session at 5,982.72, falling 50.39 points (0.84%) compared to the previous close, and the Nasdaq Composite Index dropped 180.12 points (0.91%) to settle at 19,521.09.
Trump convened a National Security Council (NSC) meeting at the White House that afternoon for over an hour, discussing with key aides ways to strike directly at Iran.
As clashes continued between Israel and Iran on this day, observations emerged that the US military could directly strike Iran’s underground nuclear facilities with bunker buster bombs. In addition, Trump openly stated that he is also considering a plan to remove Iran's Supreme Leader, Ayatollah Ali Khamenei.
On his Truth Social account that day, Trump said, "We know exactly where the so-called 'Supreme Leader' is hiding," and declared, "Our patience has reached its limit, and Iran must surrender unconditionally."
With the prospect of direct US military involvement becoming more tangible, tension spilled into the financial markets.
International oil prices surged more than 4% on the day. This suggests that even if the US intervenes militarily in Iran, geopolitical instability in the oil market is unlikely to resolve quickly.
All major tech companies with a market capitalization over $1 trillion saw declines. Tesla dropped 3.88%, and the American artificial intelligence (AI) defense firm Palantir also fell 2.27%.
Following news of the repeal of the renewable energy tax credit, solar-related stocks plummeted across the board. Sunrun fell 40%, and Enphase Energy was down 23.97%.
Shin Min-kyung, Hankyung.com journalist radio@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.
