U.S. stock markets experienced significant declines amid the recent escalation of conflict between Israel and Iran, raising concerns about a potential regional war.
Overview of Stock Market Decline
On Friday, June 13, major U.S. stock indices reported a sharp drop. The Dow Jones fell by 525.80 points, or 1.22%. Similarly, the S&P 500 decreased by 0.54%, while the Nasdaq lost 100 points, or 0.53%. Nearly all major stocks traded in negative territory, indicating a shift toward risk-off sentiment.
Impact of Conflict on Cryptocurrency Market
The escalating conflict also negatively impacted the cryptocurrency market. The overall crypto market cap fell by 2.7%, with Bitcoin down 2.19%, dropping to $105k. Significant losses were recorded in altcoins as well: Ethereum fell by 7.1%, and Solana dropped by 7.45%. Traders began reassessing their exposure to high-risk assets like tech stocks.
Outlook Amid Economic Uncertainty
The conflict between Israel and Iran has triggered concerns over rising oil prices. At one point, crude oil surged 14%, reaching $79 per barrel. The rise in oil prices heightens inflation fears, which could complicate the Federal Reserve's plans for interest rate cuts.
The situation in stock and cryptocurrency markets remains tense amid external economic risks posed by the Middle East conflict. Rising oil prices and inflation may further complicate the landscape.
