Financial Markets Slump as Tensions in the Middle East Escalate
The US stock markets closed significantly lower on Friday, with the Dow Jones Industrial Average declining by 1.8 percent to 42,198 points at the close of trading in New York. The Nasdaq 100 also fell, dropping by 1.3 percent to 21,631 points, while the S&P 500 index ended the day with a 1.1 percent decline to 5,977 points.
Investors’ sentiment was dampened by the escalating tensions in the Middle East, particularly the conflict between Israel and Iran. While the full impact of the crisis on the global oil market remains unclear, the market’s reaction was immediate, with the price of oil surging by 7.1 percent to $74.28 per barrel at the close of trading.
In the currency market, the euro weakened against the US dollar, with one euro exchanging for 1.1547 US dollars and one US dollar buying 0.8660 euros by the end of the day. In the precious metals market, gold prices benefited from the uncertainty, rising by 1.3 percent to $3,431 per ounce, equivalent to 95.53 euros per gram.
Despite the significant declines in the stock market, the selling was not as widespread as some had feared, with investors likely holding back in anticipation of further developments in the Middle East. As the situation continues to unfold, the financial markets are likely to remain volatile, with the potential for significant price swings in the days ahead.