2 hours ago
Wall Street opened Friday on the back foot, with investors refusing to buy into a temporary pause in geopolitical tensions.
The Dow Jones Industrial Average slipped 418 points (0.91%) to 45,542.08 at the opening bell. The S&P 500 declined 0.72% to 6,430.50, while the Nasdaq Composite fell 0.86% to 21,223.88, extending Thursday’s sharp selloff that pushed the tech-heavy index into correction territory.
The trigger remains a simmering West Asia conflict that markets can’t price in with any certainty. US President Donald Trump may have delayed potential strikes on Iran’s energy infrastructure by 10 days, but the move has done little to calm nerves. If anything, it has prolonged the uncertainty.
Reports suggest the Pentagon is weighing the deployment of up to 10,000 additional troops in the region, even as Washington signals openness to negotiations.
Trump has now given Iran until April 6 to comply with US demands or face potential attacks on its power assets, a ticking clock that markets are closely watching.
Meanwhile, macro signals are flashing caution. Oil prices are climbing again, with Brent crude holding above $104 a barrel, adding fresh inflation concerns.
Bond markets are reacting in tandem, the 10-year Treasury yield has surged to 4.46%, its highest level since July, up sharply from around 3.96% before the Iran conflict began. The two-year yield, which tracks rate expectations, is also hovering above 4%, while the dollar continues to edge higher.
Gold, however, is attempting a rebound after a brutal stretch that saw it decline in 10 of the last 12 sessions.
On the policy front, there’s a sliver of relief. The US Senate has passed a funding bill covering the TSA and key Homeland Security operations, potentially bringing an end to the partial federal shutdown that had begun to disrupt airports and raise economic concerns.
