New York Stock Exchange ends lower as Israel-Iran conflict intensifies
Nasdaq down 0.91%, S&P 500 falls 0.84%, Dow loses 0.7%, while 'fear index' climbs 13%
- Brent crude rises 4.55% on supply concerns, intensifying strikes
ISTANBUL
US stocks closed in the red Tuesday as the conflict between Israel and Iran continued for a fifth day with both sides' intensifying strikes and President Donald Trump threatening the Iranian supreme leader.
The Dow was down 0.7%, or 299.29 points, to end the day at 42,215.8.
The Nasdaq fell 0.91% to finish at 19,521.09 and the S&P 500 slipped 0.84% to close at 5,982.72.
Regional tensions have escalated in the Middle East since Friday, when Israel launched airstrikes on multiple sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes.
Israeli authorities have since said at least 24 people have been killed and hundreds injured in Iranian missile attacks. Iran said at least 224 people have been killed and more than 1,000 wounded in the Israeli assault.
Trump said Tuesday that Washington knows "exactly" where Iranian Supreme Leader Ayatollah Ali Khamenei is, saying he is safe "for now" while warning that "our patience is wearing thin."
"We know exactly where the so-called 'Supreme Leader' is hiding. He is an easy target, but is safe there - We are not going to take him out (kill!), at least not for now," Trump said in a social media post. "But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!"
"UNCONDITIONAL SURRENDER!" he said in a follow-up post
Concerns about the oil supply and fears that geopolitical tensions in the Middle East may last a while caused a tumultuous day for global markets, which was mirrored in European stock markets.
Although Brent crude oil prices had recovered after the initial shock of the Israeli attack, Trump's remarks and the intensifying strikes caused oil to rise 4.55% to $75.42 per barrel as of 4.20 pm local time (2040GMT).
In addition to geopolitical developments, investors will focus on the Fed's interest rate decision on Wednesday. Markets expect no change in the benchmark policy rate.
On the macroeconomic data side, retail sales in the US declined 0.9% on a monthly basis in May, more than expectations.
Industrial production also fell short of forecasts, falling 0.2% in May.
The VIX Index, also known as the “fear index," rose 13.03% to 21.60.
