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Indexes Decline Amid Geopolitical Tensions

Major U.S. indexes fell as global equities were pressured by geopolitical tensions and U.S. trade-policy concerns.

The S&P 500 (^GSPC) decreased by 1.20%, closing at 7,408.97, while the Nasdaq (^IXIC) dropped 2.15% to 25,137.69. The Dow (^DJI) was down 0.97%, finishing at 51,711.65. The declines reflect broader market caution as geopolitical tensions and U.S. trade-policy uncertainties weighed on sentiment.

Sector performance diverged, with Utilities and Healthcare leading gains at 1.45% and 1.42%, respectively. Technology shares saw modest gains of 0.22%, while Energy and Industrials lagged, down 1.18% and 1.85%.

Commodities reacted to geopolitical tensions, with oil prices rising on increased Middle East conflict risk. Gold benefitted from a shift to havens amid rising uncertainty, while the U.S. dollar remained under pressure.

Flow leadership shifted from cyclicals and risk assets toward havens, consistent with the increased demand for gold and defensive sectors.

More from the Markets desk

Utilities Lead Sector Gains

Utilities emerged as the top-performing sector, rising 1.45%, as investors sought safety amid heightened market volatility. Healthcare followed closely with a 1.42% increase.

Technology Shares Under Pressure

Despite modest gains, technology shares faced pressure as the AI trade lost momentum, and concerns over funding intensity grew.

Oil Prices React to Middle East Tensions

Oil prices surged amid escalating Middle East tensions, as geopolitical risks influenced commodity markets and investor sentiment.

Gold Rallies Amid Market Uncertainty

Gold prices rallied as investors shifted toward havens amid rising geopolitical risks and broader market uncertainty.

Dollar Weakens in Risk-off Backdrop

The U.S. dollar remained under pressure as investors rotated into safer assets in response to escalating geopolitical tensions.

Equity Flows Favor Defensive Assets

Equity flow leadership tilted toward defensive assets, consistent with increased demand for gold and utilities.

Commodities Supported by Geopolitical Risks

Commodities, notably oil and gold, were supported by geopolitical risks, as investors sought safe havens amid market volatility.

Cyclical Stocks Underperform

Cyclical stocks underperformed as investors favored defensive sectors, reflecting broader concerns over market volatility and geopolitical risks.

By the numbers

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