US Stocks Plunge as Middle East Tensions Rise
US stocks took a nosedive on Friday as tensions in the Middle East escalated, sending shockwaves through the market. The Dow Jones Industrial Average fell 534 points, the S&P 500 declined by 1.6%, and the Nasdaq Composite lost 1.8%.
The looming threat of a potential attack by Iran or its proxies has put both the US and Israel on high alert, leading to a spike in oil prices on fears of intensifying regional tensions. Chicago Federal Reserve President expressed concerns about the impact of rising oil prices on inflation and production costs.
Investors flocked to safe haven investments such as gold and bonds as uncertainty loomed over the market. The Fear & Greed Index, which measures investor sentiment, dropped to a “neutral” reading after being in “greed” territory.
JPMorgan Chase CEO Jamie Dimon warned about the risks associated with geopolitical turmoil and inflation, further fueling concerns about persistent inflation potentially delaying interest rate hikes by the Federal Reserve. The University of Michigan consumer survey showed that attitudes toward the economy have been dampened by fears of inflation.
As this developing story unfolds, stay tuned for updates on how the market continues to react to the escalating tensions in the Middle East.
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