American stocks fell sharply today. Investors fear that the conflict in the Middle East will last longer than originally expected. The U.S. dollar, meanwhile, strengthened as global tensions increase demand for safe-haven assets.
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Conflict Escalation Increases Investor Anxiety
American stocks declined sharply today. Investors feared that the conflict in the Middle East would last longer than originally expected, according to Reuters. Israel and the U.S. attacked Iran on Saturday, prompting Iran to launch retaliatory drone and missile strikes against Israel and Arab states in the region hosting American military bases.
There has also been significant disruption to oil and gas supplies due to interrupted traffic through the Strait of Hormuz, raising concerns about further energy price increases.
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Stock Indexes Fall, Dollar Strengthens
The Dow Jones Index, which includes stocks of thirty leading American companies, fell 0.83 percent and closed at 48,501.27 points. The broader S&P 500 index declined 0.94 percent to 6,816.63 points, and the technology-focused Nasdaq Composite dropped 1.02 percent to 22,516.69 points.
The U.S. dollar strengthened significantly on foreign exchange markets today. It reached several-month highs against the euro, pound sterling, and yen. The Dollar Index, which tracks the dollar’s performance against a basket of six major world currencies, rose 0.64 percent to 99.014 points around 22:00. The euro lost 0.6 percent against the dollar and traded at 1.1621 USD, the British pound weakened 0.33 percent to 1.3361 USD, and the dollar strengthened 0.18 percent against the yen to 157.653 JPY.
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Source: ČTK
