Major U.S. stock indexes, including the Nasdaq Composite, Dow Jones Industrial Average, Russell 2000 and S&P 500, all closed in negative territory on Tuesday, amid growing concerns about the potential for an escalation of conflict in the Middle East. Iran launched nearly 200 ballistic missiles toward Israel, according to the U.S. State Department. Bitcoin fell to $60,246 following the announcement, while gold prices rose a modest 1%.
Conflict Fears Rock Markets: US Stocks Slide, Bitcoin and Ethereum Drop Sharply
On October 1, 2024, reports surfaced that Iran had launched missiles at Israel, with most of the attacks successfully intercepted. However, Israeli military spokesman Daniel Hagari noted that âa few hitsâ had been made. When the news broke, markets reacted quickly, with U.S. stocks plummeting. The Russell 2000 (RUT) fell 1.48%, the Nasdaq Composite (IXIC) fell 1.53%, the Dow Jones Industrial Average (DJI) fell 0.41%, and the S&P 500 (GSPC) lost 0.93%.
Globally, markets tightened as concerns grew about the possibility of a global war. Social media was abuzz with talk of World War III and news outlets around the world were reporting updates. Like traditional stocks, the crypto market was feeling the pressure, shaken by news that unsettled equity investors. The total value of the crypto market fell to $2.12 trillion, down 5.59% in the past 24 hours.
Bitcoin (BTC) fell 4.86% on Tuesday, while Ethereum (ETH) fell 6.5%. The leading cryptocurrency, BTC, hit a low of $60,246 at 4:30 p.m. ET, while ETH hit an intraday low of $2,412 before recovering slightly to the $2,440 region. However, trading volume has remained sluggish since the morning, at $109.37 billion at press time. While still 33.12% higher than the volume on September 30, the majority of the trading reflects selling pressure. By 5 p.m. Tuesday, BTC had risen to $60,800.
Meanwhile, gold and silver were both up around 1%. As of 4:30 p.m. ET, gold was up 1.07% and silver was up 0.82%. The looming threat of war is looming over global markets, unsettling both traditional and crypto assets. Market participants are retreating from uncertainty, and the prospect of further conflict is fueling widespread unease. As tensions rise, the delicate balance is being disrupted, sending markets into a cycle of fear and retracement, leaving no asset class free from war fears.
What do you think about the market reaction to the conflict in the Middle East? Please share your thoughts and opinions on this topic in the comments section below.
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