Market Jitters: Geopolitical Tensions and US Elections Shake Global Stocks

Global equity markets fell as investors hedged against geopolitical tensions and uncertainties surrounding the U.S. presidential election. While gold price soared to an all-time high, major Wall Street indexes took a hit with defensive stocks leading the decline. European and global stock indexes also dropped amidst market unease.

Global equity markets saw declines on Monday as geopolitical tensions and U.S. election uncertainties led investors to hedge their positions. In the midst of this turmoil, gold prices reached new highs, while the Israeli military continued its offensive against Lebanon's Hezbollah, causing Beirut residents to flee their homes as explosions rocked the city.

The downturn was evident across major Wall Street indexes, with defensive stocks among the biggest detractors on the S&P 500. The Dow Jones Industrial Average dropped by 0.76% to 42,946.87, the S&P 500 decreased by 0.54% to 5,832.71, and the Nasdaq Composite slipped by 0.42% to 18,412.33. European markets mirrored this decline, with the MSCI global stock index falling 0.61%.

Wasif Latif, president and chief investment officer at Sarmaya Partners, attributed the market's nervousness to ongoing Middle East tensions and the imminent U.S. election. Meanwhile, oil prices experienced a minor recovery, following last week's significant drop, with Brent crude futures rising to $73.68 a barrel and U.S. crude climbing to $69.91.

(With inputs from agencies.)