US sharemarkets endured another volatile session on Tuesday as escalating tensions between the US and Iran unsettled investors. The Dow Jones Industrial Average fell 403 points, or 0.83%, to 48,501.27. The S&P 500 declined 0.94% to 6,816.63, while the Nasdaq Composite lost 1.02% to 22,516.69. Earlier in the session, all three benchmarks were down more than 2.5% before paring some losses into the close.
Energy prices again drove market direction. Brent crude settled up 4.71% after briefly surging more than 9%, while US crude rose 4.68%. At one point, Brent traded above US$85 a barrel amid concerns that the Strait of Hormuz, a key global oil transit route, could remain closed. The US Navy signalled it would escort tankers through the waterway if necessary, helping ease some of the day’s extremes.
Treasury yields initially rose on inflation fears before retreating as oil pulled back from session highs. All 11 S&P 500 sectors finished lower, with materials and industrials among the weakest.
Tech and financials under pressure
Major technology names that led Monday’s rebound fell again, including Nvidia and several US memory chip stocks. Private markets and asset management stocks were also weaker, with Blackstone declining after reports of fund outflows. The CBOE Volatility Index rose to its highest level since November, reflecting heightened risk aversion.
Gold, which had rallied in the previous session, reversed sharply lower, highlighting the instability across asset classes.
Australian market outlook
Australian shares are poised to fall, tracking Wall Street’s losses and elevated oil prices. ASX 200 futures were down 124 points, or 1.37%, to 8,910.
Local investors will monitor fourth-quarter GDP data due at 11.30am and earnings from Endeavour Group. Offshore, February PMI readings are expected from China, France and the UK, as markets continue to assess the broader economic impact of escalating geopolitical tensions.
