- The US stock market opened lower after a prior rally amid fading Iran war de-escalation hopes
- S&P 500 fell nearly 1%, Nasdaq dropped 0.61%, and Dow Jones declined 0.79% at open
- US-Israel strikes targeted Iran’s energy sites, pushing oil prices higher and markets down
The US stock market opened in the red on Tuesday, day after rallying, as expectations related to a de-escalation in the Iran war faltered. The wider index, S&P 500, slipped nearly 1% as it hit a low of 6,525.52 minutes after the opening bell.
The tech-heavy Nasdaq Composite opened 0.61% or 133.67 points lower at 21,813, whereas the Dow Jones Industrial Average fell 0.79% or 366.94 points to 45,841.53.
The indices opened in the red amid rising oil prices, agains the backdrop of the US-Iran-Israel war, with de-escalation no longer on the horizon.
US-Israel military forces carried out strikes against energy infrastructure situated in Iran's Isfahan and Khorramshahr, according to reports from Tasnim News Agency.
After the market opened, seven out of eleven sectoral indices traded in the red. The downturn was led by the Communication Servicea sector, which was down over 1.3%, followed by the Information Technology sector that fell 1.12%, and the Consumer Discretionary sector which decreased more than 0.70%.
This development was after US President Donald Trump had stated on Monday, that the US would postpone strikes on Iran's energy infrastructure for five days, with Iran denying the existence of these talks.
Losses in big tech lead to a slump in the Nasdaq index which went down over 0.6%. Nvidia Corp. traded 0.55% lower at 174.68, Amazon.com Inc. declined 1.00% to $208.04, and Google-parent Alphabet Inc. decreased 1.45% to $297.68.
Besides this, Microsoft Corp. shares traded 1.95% lower at $375.93, Meta Platforms Inc. traded 1.53% lower at $594.82, and Tesla opened in the green going up 0.92% to trade at $384.34 likely due to the rising oil prices making electric vehicles (Tesla's main product) look like a more viable alternative.
Crude oil saw an uptick, with the West Texas Intermediate trading 3.85% higher at $91.52 a barrel and Brent futures trading 2.99% higher at $98.79. Spot gold was down 0.22% at $4,397.09 an ounce.
Bitcoin, the largest traded cryptocurrency, fell 2.38% to $69,814.
In the previous days trade, Dow Jones Industrial Average closed at 46,208.47 up 631.06 points or 1.38%, while the S&P 500 finished at 6,581.00 up 74.52 points or 1.15% and the Nasdaq Composite ended at 21,946.76 up 299.15 points or 1.38%.
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