New york: The New York Stock Exchange experienced its most significant daily drop since the beginning of the Iran war, triggered by uncertainties surrounding tensions in the Middle East.
According to Anadolu Agency, the Dow Jones Industrial Average fell by 1.01%, losing 469.38 points to close at 45,960.11. The Nasdaq Composite suffered a steep decline of 2.38%, dropping 521.74 points to 21,408.08, while the S and P 500 experienced a substantial decrease of 1.74%, shedding 114.74 points to end at 6,477.16. The Volatility Index (VIX), often referred to as the market's 'fear index,' decreased by 8.33% to 27.44.
The negative trend in stock markets was exacerbated by rising oil prices amidst uncertainty about the situation in the Middle East. Iranian officials stated they had no intention of engaging in direct negotiations with the US but indicated a willingness to review the US plan aimed at ending the conflicts. US President Donald Trump, via social media, claimed that Iranian negotiators were 'begging for a deal' but publicly stated that they were merely reviewing the US offer. Trump emphasized that Iran must get serious soon, warning of severe consequences if they do not.
In a cabinet meeting, Trump mentioned that the outcome of the negotiations with Iran now depends on Tehran. He predicted further rises in oil prices and additional declines in the stock market but suggested the situation was not as dire as anticipated. Trump also noted that energy prices might rise slightly further before returning to previous levels or even lower.
As of 2000GMT, Brent crude oil price increased by 5.2% to $107.53 per barrel. In macroeconomic data, initial jobless claims in the US rose to 210,000 for the week ending March 21, slightly below expectations.
European stock markets mirrored the declines seen in the US. The pan-European Stoxx Europe 600 index decreased by 1.13% to close at 580.84 points. The UK's FTSE 100 fell 1.33% to 9,972.17, Germany's DAX 40 went down by 1.5% to 22,612.97, and France's CAC 40 dropped 0.98% to 7,769.31. Italy's FTSE MIB 30 decreased by 0.71% to finish at 43,701.84, while Spain's IBEX 35 posted a decline of 1.21% to 16,962.90.