On Wall Street, the world’s leading financial market saw a fall in the main US stock indices as geopolitical tensions escalated over the conflict with Iran.
The Dow Jones index dropped by 1.1% to 52,348.39 points, whilst the S&P 500 lost 0.3% to close at 7,482.71 points on Wednesday evening. The Nasdaq, however, rose by 0.2% to 25,870.65 points, thanks to strong performance by chipmakers’ shares.
Meanwhile, oil prices on wholesale markets rose again following Tuesday’s surge, driven by the crisis in the Middle East, exceeding $80 per barrel. Rising energy prices have fueled investor concerns about persistent inflation and dampened market sentiment.
In addition, fears of a prolonged period of high inflation have also had a negative impact on government bonds, leading to falling prices and rising yields. AFP said that 10-year French government bond yields have reached their highest level since 2009.
Demand for shares in the South Korean semiconductor giant SK Hynix in the US exceeded supply by more than seven times. The company plans to raise $28 billion to expand its capacity in the artificial intelligence sector.
Based on the minutes published by the Federal Reserve, a number of officials saw strong grounds for tightening monetary policy. Still, following the June meeting, the US central bank’s leadership reached a consensus and unanimously left interest rates unchanged.
Tensions flared up again after US President Donald Trump declared the temporary peace agreement with Iran to be terminated after the attacks on tankers in the Strait of Hormuz. Later on Wednesday evening, the US military launched further strikes against Iran.
