Abu dhabi: US equities ended lower on Monday following a spike in crude oil prices driven by military strikes between the United States and Iran. The surge in energy costs reignited inflation fears and boosted expectations of a potential Federal Reserve interest rate hike in September, weighing on overall market sentiment.
According to Emirates News Agency, the S and P 500 fell 0.36%, losing 27.39 points to finish at 7,684.37, while the Nasdaq Composite slipped 0.16% to 26,360.91. The Dow Jones Industrial Average dropped 380.22 points, or 0.71%, to 53,179.77.
The recent military tensions have led to increased volatility in the oil markets, pushing energy stocks higher while putting pressure on consumer spending and broader economic growth. Investors are now closely watching the Federal Reserve's next moves, as higher interest rates could further impact borrowing costs and investment activities.
Market analysts suggest that the recent developments may lead to a more cautious approach by investors, who are now factoring in the potential risks of ongoing geopolitical tensions and their effects on global economic stability.