Geopolitical Tensions Shake U.S. Markets: Investors Flock to Safe Havens Amid Iran-Israel Conflict Fears

Increasing geopolitical tensions due to a potential Iranian ballistic missile strike on Israel caused U.S. investors to shift from stocks to safer assets like Treasuries and the dollar. The S&P 500 and Nasdaq Indexes dropped, while gold and oil prices surged. This market reaction reflects heightened risk aversion.

U.S. investors rapidly moved away from stocks and towards safe-haven assets such as Treasuries and the dollar, following indications from U.S. intelligence of an imminent Iranian ballistic missile strike against Israel.

The S&P 500 fell by 0.9% and the Nasdaq Composite by 1.6%. The dollar appreciated by 0.5% against a basket of currencies. The yield on the 10-year Treasury dropped by around 8 basis points to 3.72%, while crude oil prices surged by 3.8% to $70.75 per barrel. Gold rose 1.15% to approximately $2,665.00 an ounce.

Market experts believe this response echoes historical patterns of investor behavior during geopolitical crises, as seen in comments from analysts and strategists. Despite the selloff, the risk remains measured due to the expectation of a calibrated response from Iran, akin to similar historical events.

(With inputs from agencies.)