The New York Stock Exchange is experiencing a sharp drop on Tuesday, the fourth day of the Israeli-American conflict with Iran, driven in turn by fears of a prolonged war in the Middle East and its impact on the American economy.
Around 15:15 GMT (16:00 Paris time), the Dow Jones was down by 2.22%, the Nasdaq index fell by 2.13%, and the broader S&P 500 index lost 2.07%.
Investors in the United States are reacting differently. They have realized that this situation will not disappear quickly and could have significant international repercussions.
Iran is targeting US-related sites across the Gulf, including the US embassy in Riyadh and Amazon’s data centers in the UAE and Bahrain, in response to the war initiated by Israel and the US.
The surge in energy prices has operators worried about the inflationary impact of the war on the American economy. This could also affect business profits due to higher operating costs and a potential slowdown in consumer spending.
Analysts mention possible implications for the Fed’s interest rate policy, with the central bank possibly pausing rate cuts or even raising them, which could undermine the American market.
In response, American bond rates continued to rise. The 10-year bond yield was at 4.10%, up from 4.03% at Monday’s close.
Most companies, including tech giants like Nvidia, Alphabet, Amazon, and Microsoft, were trading in the red. Even sectors like energy and defense, which had performed well the previous day, were struggling.
The geopolitical situation is overshadowing the day’s corporate results. Target supermarket chain’s stock remains strong, while Best Buy’s electronics retail group saw an increase after strong quarterly performance.
Overall, the market is cautious in response to the ongoing tensions in the Middle East, with investors closely monitoring the situation.
