Wall Street Reels Amid Middle East Tensions and Economic Uncertainties

On Tuesday, major Wall Street indexes dropped sharply as Middle East tensions worry investors. The S&P 500 hit its lowest in over a week, while defense stocks saw gains amid rising oil prices. Economic data and Federal Reserve comments continue to influence the market outlook.

Wall Street's major indexes experienced a significant downturn on Tuesday, influenced by escalating tensions in the Middle East that led investors to shed riskier assets. The S&P 500, a key benchmark, fell to its lowest level in over a week.

A senior White House official confirmed that the United States is actively preparing to support Israel amid threats of an imminent ballistic missile attack from Iran. In response, the Dow Jones Industrial Average dropped by 133.26 points, the S&P 500 by 55.91 points, and the Nasdaq Composite by 312.63 points.

The increased geopolitical risk caused a notable spike in crude oil prices, boosting the energy sector by 1.8%, while defense stocks like Northrop Grumman and Lockheed Martin saw gains. Volatility in the market is expected to persist as investors focus on geopolitical developments and upcoming Federal Reserve statements.

(With inputs from agencies.)