The S&P 500, Dow Jones Industrial Average, and tech-heavy Nasdaq Composite opened in the red on Monday, after they posted their worst week since October.
S&P 500 was trading 0.98% or 64.62 points lower at 6,675.19 minutes after open, Dow Jones Industrial Average fell 1.12% or 530.64 points, while tech-heavy Nasdaq Composite slipped 207.12 points or 0.94% lower.
This comes as US oil prices had crossed $120 a barrel on Monday before it fell back on Monday as the Iran war intensified. The rally comes after crude had settled significantly lower last week. Brent closed Friday at $92.69 per barrel and US crude ended the session at $90.90 before geopolitical tensions escalated.
Procter & Gamble Co., Johnson & Johnson and Walmart Inc. were amongst the gainers for the day. On the other hand, Boeing Co., Walt Disney Co., Nike Inc., Amazon.com, Microsoft Corp., Apple Inc. and Goldman Sachs Group Inc. were in the red.
US stocks are facing a growing risk of a sharp selloff this year, veteran strategist Ed Yardeni told Bloomberg. He also updated his outlook for what he describes as “fast-moving times.”
Traders are unprepared for a correction in the S&P 500 that could see the gauge falling as much as 10% from its peak as a result of the war in Iran, JPMorgan Chase & Co.'s trading desk told Bloomberg.
As the US market opened, spot gold fell 1.4% to $5,101.62 an ounce. Crude oil prices rose, with the West Texas trading 9.6% higher at $99.66 per barrel.
The Bloomberg Dollar Index was little changed, with the British Pound falling 0.3% at $1.3379 and the Japanese yen at 158.28 per dollar.
Bitcoin, the largest traded cryptocurrency was up 2.3% at $68,765.4.
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