Geopolitical Tensions Surge as Markets React to Middle East Strife

Global financial markets experienced considerable fluctuations as Middle East tensions rose due to Israeli airstrikes in Gaza. The U.S. Federal Reserve's meeting on monetary policy and Germany's fiscal reform added to market jitters. Gold reached new highs while cryptocurrencies and major stock indexes faltered.

Global markets were rattled on Tuesday following Israeli airstrikes on Gaza, which heightened geopolitical tensions. In response, gold surged to a record high, signaling investor anxiety.

Meanwhile, the U.S. Federal Reserve met to discuss monetary policy amidst increasing economic uncertainty, especially concerning tariffs. Germany's parliamentary vote to reform spending resulted in mixed movements for the euro and European stocks.

Both U.S. and global stock indexes experienced downturns, with tech stocks in particular dragging the Nasdaq down. As the Federal Reserve discussed interest rates, a surge in single-family housing starts provided a glimmer of hope against broader bleak economic indicators.

(With inputs from agencies.)