Stock Market Update: U.S. Stocks Close Lower as Iran Fires Missiles at Israel
By Caroline Valetkevitch
Investors turned cautious after Iran launched ballistic missiles at Israel in response to Israel's campaign against Tehran's Hezbollah allies. President Joe Biden directed the U.S. military to aid Israel's defense, leading to a mixed day for U.S. stocks.
Energy companies and defense stocks like Northrop Grumman and Lockheed Martin saw gains, while airlines like Delta Air Lines fell. The aerospace and defense index hit a record high, and utilities also saw an increase.
Despite the Middle East tensions, the market ended off its lows. Analysts warned of potential market weakness if the situation escalates further.
The S&P 500 lost 0.94%, the Nasdaq Composite lost 1.54%, and the Dow Jones Industrial Average fell 0.41%. The CBOE's volatility index rose.
Investors also monitored U.S. economic data and the possibility of rate cuts by the Federal Reserve. A port strike on the East Coast and Gulf Coast added to economic uncertainty.
Analysis:
The stock market closed lower as tensions in the Middle East caused caution among investors. Energy and defense stocks saw gains, while airlines fell. The market ended off its lows, but uncertainty remains. Economic data and the possibility of rate cuts by the Federal Reserve are also impacting investor sentiment. The port strike adds to economic uncertainty, with potential implications for global supply chains and Fed policy decisions.
