Global investors once again face a potential reversal in sentiment as the U.S.-Iran conflict continues to grab headlines and create new uncertainty. Financial markets, which had been lifted by strong corporate earnings and hopes of a deal between the U.S. and Iran, were pushed lower today by doubts over whether an agreement between the two sides will take place. Although diplomatic efforts have been made by the U.S. and Iran, U.S. ally Israel took a more hardline stance and announced that it had killed a Hezbollah commander in Beirut. Brent crude oil prices rose back above $100 per barrel after briefly dipping below that mark.
The Dow Jones Industrial Average slid 314 points to 49,597. The Nasdaq edged down 0.12% to 28,564. The S&P 500 gave up 0.38% to 7,337. Communication services and consumer discretionary were the only sectors to end the day in the green, although they were effectively flat.
Treasury bond yields also picked back up. The 5-year and 10-year benchmark yields rose by 3 basis points to 4.03% and 4.38%, respectively. Gold remained flat at just above the $4,700 mark.
Economic data today continued to show the resilience of the U.S. economy. Jobless claims remained stable, construction spending reversed course and rose in March, and U.S. productivity expanded.
An employment report will be released tomorrow. The Federal Reserve has been closely watching this data, as employment is part of its dual mandate. Adams Wealth Advisors will be back with more news.
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