US Market Reaction To Bashar al-Assad's Fall & Syria Civil War; Dow Jones, S&P 500, Nasdaq Dip 0.5-1% On Dec-9

The US market reacted negatively to the rising tensions in Syria and its neighboring countries. Amidst the fall of Bashar al-Assad's 24-year-old rule, Syrian rebels have captured the capital city, Damascus. However, this has led to the intervention of many forces into Syria, trying to capture lands.

Israel's Prime Minister Benjamin Netanyahu has urged its IDF to be on alert since their deal with Syria also ends with Assad's exit. Additionally, the US military forces have reportedly launched an aerial operation on some 75 strategic locations in Syria, to prevent terrorist group ISIS from gaining power in the region. On Monday, Wall Street witnessed selling pressure with Dow Jones, S&P 500 and Nasdaq closing lower by 0.5-1%.

Dow Jones: The Dow Jones Industrial Average or DJIA closed at 44,401.93, down by 240.59 points or 0.59%, which was near its intraday low of 44,382.83.

S&P 500: This index dipped by 37.42 points or 0.61% to end at 6,052.85. The index was also near its day's low of 6,048.63.

Nasdaq Composite: The tech-heavy index Nasdaq witnessed massive selloffs, toppling it below the 19,700 mark. The index ended at 19,736.69, down by 123.08 points or 0.62%, after hitting an intraday low of 19,698.05.

As per Trading Economics data, stocks in the US kicked off the week lower, as Nvidia shares dropped amid a Chinese antitrust investigation and investor caution ahead of a critical inflation report. Both the S&P 500 and the Nasdaq 100 slid 0.6%, following recent record highs, while the Dow Jones fell 240 points.

Trading Economics data pointed out that all eyes are on Wednesday's upcoming inflation data, which could influence expectations for Federal Reserve rate cuts. On the corporate front, Nvidia shares tumbled 2.5% after Chinese regulators launched a probe into potential anti-monopoly violations. Meta lost 1.6%, while Apple rose 1.6% to $246.75, its 21st record close this year. Super Micro Computer added 0.5% after receiving an exceptional extension from Nasdaq, allowing the company to file its delayed annual report. Markets also absorbed news of China's pledge to implement "moderately loose" monetary policies and "more proactive" fiscal measures in 2025, boosting optimism for economic recovery.

Syrian Civil War:

In the latest report, the US has stated that Assad's fall brings opportunity, however, it also opens risks for ISIS to regain power in regions amidst the transition process. Thereby, reports also said that US military forces have strategically carried out dozens of air strikes on 75 locations that are ISIS-strong hold bases. These ISIS targets included their leaders, operatives and camps. The move is to ensure that ISIS does not exploit the current situation in Syria for its gains.

Apart from this, Israel's UN Ambassador Danny Danon emphasized that Israel is not intervening in the internal ongoing conflict between Syrian armed groups, however, they have taken limited and temporary measures in dematerialized borders of Syria to ensure the safety of Israeli-occupied Golan Heights residents. He also told the United Nations Security Council on Monday, that Israel is committed to the 1974 Separation of Forces Agreement framework with Syria.

Inside, Syrian Prime Minister Mohammed Ghazi Jalali has informed that the government in the country continues to be operational even after the collapse of Assad's regime. He has even vowed to a smooth transition and to help the Syrian rebels to form regulations and the new government.