The American financial markets experienced a sharp decline on October 15, 2024, driven by escalating geopolitical tensions in the Middle East, particularly Israel’s continued military actions against Iran and Hezbollah, coupled with weaker-than-expected Q3 earnings from major companies. Israel’s Prime Minister Benjamin Netanyahu confirmed that while his country would avoid targeting Iran’s oil and nuclear facilities, retaliation would focus on military targets following missile attacks from Iran. Despite U.S. caution, Netanyahu asserted that Israel would prioritize its national interest.
As a result, U.S. stock indices saw significant drops. The Dow Jones Industrial Average (DJIA) fell by 324.80 points (-0.75%), closing at 42,740.42, while the Nasdaq Composite dropped by 187.10 points (-1.01%) to 18,315.59. The S&P 500 also dipped by 44.59 points (-0.76%) to 5,815.26. Additionally, a drop in oil prices put further pressure on energy stocks, as WTI and Brent crude fell by more than 4%. Stocks in the energy sector, including Exxon Mobil and Chevron, slid amid this downturn. Meanwhile, semiconductor stocks like Nvidia, AMD, and Intel also experienced sharp declines after chipmaker ASML cut its outlook.
On the positive side, Bank of America posted stronger-than-expected profits, and Apple shares surged after the launch of the iPhone 16, buoyed by strong demand for previous models. However, overall, the market remained under stress due to geopolitical uncertainty and weak earnings reports from major sectors
