U.S. stocks opened sharply lower but erased most of their losses during the session, with some major indexes ultimately closing in positive territory. After an initial sell-off driven by geopolitical concerns, investors stepped in to buy at lower prices, while the dollar strengthened as a safe-haven asset amid rising uncertainty.
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Markets Reverse Course, Tech Ends in the Green
U.S. equities fell by more than one percent at the open following an escalation of the conflict in the Middle East, which has disrupted global trade routes and fueled concerns about renewed inflationary pressures. Uncertainty over further developments prompted broad-based selling across sectors in early trading. As the session progressed, however, sentiment gradually stabilized and investors began seeking attractive entry points, helping technology stocks and the broader market close higher.
The Dow Jones Industrial Average fell by 73.14 points (0.15%) to 48,904.78. The broader S&P 500 gained 2.74 points (0.04%) to 6,881.62, while the tech-heavy Nasdaq rose 80.65 points (0.36%) to 22,748.86. A late-session rebound in major technology names such as Nvidia and Microsoft played a key role in turning the market higher.
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Conflict Lifts Energy and Defense Stocks, Dollar Advances
Tensions following attacks by Israel and the United States on Iran boosted shares of defense contractors and energy companies, as investors anticipated higher defense spending and potential increases in oil prices. Travel agencies, airlines, shipping companies, and banks came under pressure, reflecting concerns about higher costs and possible economic slowdown. Market participants are also weighing how long the conflict could last and what it may mean for inflation and the Federal Reserve’s monetary policy.
The U.S. dollar strengthened against a basket of major currencies as investors sought safety. The dollar index rose 0.96% to 98.55. The euro fell 1.1% to $1.1693, while the dollar gained 0.8% against the Japanese yen to 157.35. The euro declined 0.2% against the yen to 183.93, as both the eurozone and Japan are seen as more exposed to higher energy costs than the United States, which is a net energy exporter.
Source: ČTK
