U.S. Stock Market Trend | Middle East Ceasefire Negotiations Unclear, Dow Jones Slightly Soft

The outlook for Middle East ceasefire negotiations remains uncertain, and rising oil prices are weighing on the Dow, which is slightly weaker.

As of 11:10 p.m. local time, the Dow Jones Industrial Average was at 46,350 points, down 78 points or 0.17%; the S&P 500 was at 6,548 points, down 42 points or 0.65%; and the Nasdaq was at 21,710 points, down 219 points or 1%.

Iran continues to reject the negotiation proposals pushed by U.S. President Trump. According to news website Axios, the U.S. Department of Defense is studying “final strike” options, including deploying ground forces and large-scale bombing operations. Trump also warned Iran again to take negotiations seriously soon, or face serious consequences.

Market participants note that if Iran signals willingness to negotiate and increases the likelihood of reopening the Strait of Hormuz, the stock market could quickly rebound to previous highs; however, Iran’s current rejection of all dialogue proposals continues to increase market risk sentiment.

BlackRock President Rob Kapito warned that investors may underestimate the risks of war. He pointed out that even if the conflict ends in the short term, high energy prices could still drag on economic growth and push up inflation.

In European markets, the FTSE 100 index in the UK was at 9,989 points, down 117 points or 1.16%; Germany’s DAX was at 22,677 points, down 279 points or 1.22%; France’s CAC 40 was at 7,803 points, down 43 points or 0.55%; and Italy’s FTSE MIB was at 43,648 points, down 364 points or 0.83%.

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