US equity markets opened lower on Wednesday as geopolitical tensions in the Middle East escalated sharply.
The sell-off was triggered by reports that the United States and Iran exchanged attacks overnight, effectively ending the fragile ceasefire that had held in recent weeks.
President Donald Trump’s statement that the truce is over added to the uncertainty, prompting investors to flee riskier assets.
President Donald Trump’s statement that the truce is over added to the uncertainty, prompting investors to flee riskier assets.
The S&P 500 and Nasdaq Composite both dipped in early trading, reflecting growing concerns about the potential for a wider regional conflict.
Energy stocks saw mixed reactions, with some investors hedging against supply disruptions while others worried about the broader economic impact of prolonged instability.
The dollar strengthened as a safe-haven asset, while Treasury yields fell as demand for government bonds rose.