US Markets
Stocks fade as oil, yields, and volatility jump
A geopolitics-driven risk bid lifts crude and Treasuries, while U.S. equities finish broadly lower.
U.S. stocks end the day in the red, with the S&P 500 down 0.7% to 7631.4702, the Nasdaq Comp. off 1.0% to 26099.7734, the Dow Jones lower by 0.8% to 52766.8789, and the Russell 2000 down 1.2% to 2920.1323. The tone is weak from the open and never really recovers.
Sector action is mixed but tilted defensive. Energy rises 1.3%, Utilities add 0.8%, Health gains 0.7%, and Staples are up 0.3%. On the other side, Discretionary falls 1.7%, Tech drops 1.5%, and Industrials lose 1.4%.
The day’s backdrop is dominated by fresh geopolitical risk. CNBC Markets says the U.S. strikes Iran as Tehran retaliates, raising the risk of a wider war, and MarketWatch reports global oil prices surge to a 6-week high after the U.S. strikes Iran in Hormuz. That shows up directly in the tape, with WTI crude up 5.9% to 90.79 and Brent up 5.3% to 95.25.
Volatility also picks up. The VIX rises 9.5% to 16.34, while the 10-Yr Treasury yield climbs to 4.796% and the 5-Yr moves to 4.557%. The S&P remains above its 200-day average at 7122.52, but the index closes below its 50-day average of 7565.89.