As the military conflict between Israel and Iran continues to escalate, geopolitical risks have heightened, and on the 17th (local time), the New York stock market closed with overall declines. International oil prices surged more than 4%, and the value of the dollar increased.
On that day, the Dow Jones Industrial Average fell by 299.29 points (-0.70%) from the previous trading day, finishing at 42,215.80. The Standard & Poor's (S&P) 500 index closed down 50.39 points (-0.84%) at 5,982.72, and the Nasdaq index dropped 180.12 points (-0.91%) to close at 19,521.09.
Market weakness is attributed to President Trump's tough message and the heightened tensions arising from potential U.S. intervention in the Middle East. On that day, President Trump held a meeting with the national security team in the White House Situation Room to discuss the possibility of military intervention, including strikes on Iran's nuclear facilities. He mentioned on social media that he knew the whereabouts of the Iranian Supreme Leader's hideout, warning that "our patience is running out" and pressuring Iran to "unconditionally surrender."
Amid the rising tensions, the preference for safe assets increased, leading to a decline in U.S. Government Bonds yields. The yield on the 10-year U.S. Government Bonds fell by 6 basis points to mark 4.39%.
International oil prices rose sharply. At the ICE Futures Exchange, Brent crude for July delivery ended at $76.54 per barrel, up $3.22 (4.4%) from the previous session, while WTI for July increased by $3.07 (4.28%) to $74.84.
Meanwhile, U.S. economic indicators negatively impacted the stock market. According to the U.S. Department of Commerce, retail sales in May were $715.4 billion, a decrease of 0.9% from the previous month. This figure significantly fell short of the expert forecast of (-0.6%). Wall Street assessed that consumer sentiment is contracting amid tariff uncertainties and concerns over economic slowdown.
On that day, Tesla's stock fell by 3.9%, leading to a decline in the Nasdaq. With the Federal Reserve starting a two-day Federal Open Market Committee (FOMC) meeting, attention is focused on what stance Chairman Jerome Powell will take regarding future interest rate policy.
Despite the preference for safe assets, gold prices remained steady. Gold futures at the New York Mercantile Exchange closed at $3,406.90 per ounce, down 0.3% from the previous session. At the same time, the dollar index recorded a rise of 0.9% to 98.81 compared to the previous day.