ISTANBUL
The New York Stock Exchange saw the highest daily drop since the beginning of Iran war amid uncertainties related tensions in the Middle East.
The Dow lost 1.01%, or 469.38 points, to close at 45,960.11.
The Nasdaq composite declined sharply 2.38%, or 521.74 points, to 21,408.08, while the S&P 500 posted a strong decrease of 1.74%, or 114.74 points, to 6,477.16.
The Volatility Index (VIX), often referred to as the market’s “fear index,” fell by 8.33% to 27.44.
As oil prices rose amid uncertainty over the situation in the Middle East, stock markets saw a negative trend.
Iranian officials stated that they had no intention of engaging in direct negotiations with the US, but indicated that they would review the US plan aimed at ending the conflicts.
US President Donald Trump, in a post on his social media account, claimed that Iranian negotiators were “begging for a deal” but publicly stated that they were merely looking at the US offer.
Arguing that this was incorrect, Trump stated, “They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!”
In a speech during a cabinet meeting, Trump also noted that the outcome of the ongoing negotiations with Iran now depends on Tehran.
Trump said he expects oil prices to rise further and the stock market to fall further, but argued that the situation is not as severe as he had anticipated.
Trump noted that energy prices could rise slightly further, adding that they will return to their previous levels and likely even lower.
With these developments, the price of Brent crude oil rose by 5.2% to $107.53 per barrel as of 2000GMT.
On the macroeconomic data front, the number of initial jobless claims in the US rose to 210,000 for the week ending March 21, though it came in slightly below expectations.
European stocks
The stock markets in Europe also saw declines on Thursday, with the pan-European Stoxx Europe 600 index lost 1.13% to close at 580.84 points.
The UK’s FTSE 100 decreased 1.33% to 9,972.17, Germany’s DAX 40 went down by 1.5% to 22,612.97, and France’s CAC 40 dropped 0.98% to 7,769.31.
Italy’s FTSE MIB 30 was down 0.71% to finish at 43,701.84, while Spain’s IBEX 35 posted a decline of 1.21% to 16,962.90.
