Equities are feeling the intense heat of the swift return to risk-aversion.
US stock benchmarks have dropped to new lows since the conflict began, with the Nasdaq and S&P 500 under the most severe pressure (while the Dow Jones is not there yet).
Across the board, major indices are down 1% and more for the session, with the pump-fake from Monday now turning against itself: Any hopes for a quick peace deal have proven short-lived, and the market’s previous easing in sentiment was merely a timid pause.
Bulls who bought that dip are now paying the consequences.
The cause: A classic, violent rebound in Energy markets: Oil continues to surge, with Brent crude pushing back above the critical $110 per barrel mark. This spike in energy costs is logically reawakening inflation fears and dragging down risk assets – But this time, Gold is actually faring better.
The particular turn comes from the fact that traders are actively pricing in the risk of a severe escalation over the weekend: The impending arrival of a 4,500-strong Marine fleet in the Middle East is adding to the immense geopolitical anxiety.
Investors are tracking headlines by the minute, waiting to see if an anticipated Iranian counter-proposal to a security deal actually materializes.
As traditional markets close, all eyes will turn to Bitcoin over the weekend. Because it trades 24/7, it will act as the primary real-time barometer for global sentiment.
Let’s spot where today’s rough price action is heading by looking at today’s intraday charts and trading levels for the major US indexes: the Dow Jones, Nasdaq, and S&P 500.
