The tensions in the Middle East continue to be at a boiling point with Israel and Iran at the forefront of the geopolitical crisis. In the latest development, the Islamic country has launched a barrage of approximately 200 missiles on Israel, in less than 24 hours of the Jewish-dominated country's ground invasion in Lebanon, a home ground of Iran's proxy Hezbollah. Following the barrage of missiles from Iran on Israel, the US market witnessed massive selling pressure on Tuesday, October 1. Nasdaq has slipped by more than 1.5%, while the S&P 500 index dipped by a per cent, and Dow Jones fell by nearly over 380 points.
Latest Development In Middle East:
Israel has entered the gates of a wider war, after its retaliation for the October 7th massacre on Gaza-based terrorist group Hamas. Nearly 12 months into the war, Israel has been taking missiles from Hezbollah frequently, however, the matter escalated after the killing of Hezbollah's decades-old leader Hassan Nasrallah, and hundreds of pagers blasts in Lebanon that led to the killing of hundreds of Hezbollah fighters.
In response to the latest attack from Israel on Hezbollah's senior commanders and leaders, the latter's regime has been dangling currently. Taking the opportunity, Israel's IDF soldiers stepped into southern Lebanon in the early hours of Tuesday, which is for the first time since 2006.
In less than 24 hours, Iran fired over 200 ballistic missiles at Israel and the region around it, especially targeted towards its capital Tel Aviv. However, the country's Iron Dome kicked into action, intercepting the majority of the missiles. The chief of Israel's military has revealed that the damage from Iran's second missile attack in less than 6 months, has been minimal and they have not heard of any casualties. However, a Palestinian in the West Bank was reported to have died.
Israel has declared to retaliate against Iran's latest shower of missiles, however, the details have not yet been revealed. And if going by the pattern from the last few months, expectations from Israel to carry yet another retaliation on Iran and its regime are high.
Amidst this, US President Joe Biden has directed the country's military forces to support Israel in its defence against Iran's attack. They have also increased the presence of US personnel in the region, and further reviewed preparations to ensure their safety.
These developments come a day after Prime Minister Benjamin Netanyahu appeared at the UN, where he warned Iran of striking them, saying, "Israel will strike back". Netanyahu firmly announced that Israel will continue its war against terrorism and Iran's proxy.
US Market Reaction On Tuesday, October 1:
The Dow Jones Industrial Average index fell by more than 384.5 points, slipping below the 42,000 mark to hit an intraday low of 41,945.63. Currently, the Dow Jones traded down by 173 points.
S&P 500 index, meanwhile, dipped by over 1% to hit an intraday low of 5,681.28. Overall, the index dropped by over 81 points.
Further, the tech-heavy Nasdaq Composite index shed by as much as 409.4 points or 2.25% to touch the day's low of 17,779.77.
On the latest performance of US stocks, Trading Economics data said, Iran launched a barrage of missiles at Israel in response to Israel's invasion of southern Lebanon, intensifying tensions in the region. In economic news, job openings in August unexpectedly rose to 8.04 million, up from 7.71 million in July, signalling that while the labour market is cooling, it's not doing so rapidly. Meanwhile, U.S. manufacturing activity remained stagnant in September, with the ISM manufacturing PMI holding steady at 47.2, indicating ongoing contraction. Tech stocks struggled, with Apple and Nvidia dropping by 2.9% and 3.7%, respectively. In contrast, energy companies rose with oil prices, led by Exxon Mobil's 2.3% gain. Defence stocks, including Northrop Grumman (3%) and Lockheed Martin (3.6%), also benefited from geopolitical tensions.
The selloff in Wall Street would be reflected in the Asian market on Wednesday. However, the Indian market is closed on October 2nd due to Gandhi Jayanti.
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