American Market Reaction On Israel-Iran Fued, No Ceasefire In Lebanon: Dow Jones, Nasdaq Falls On Oct 15

The American market has been influenced deeply by the Q3 earnings season, the upcoming Presidential Election, and the state of escalating geopolitical risks in the Middle East. Amidst all the discussions with the US and even Russia's firm warning related to the attack on Iran, Israel's PM Benjamin Netanyahu has vowed to continue with their plan of retaliation against Iran, as he cited it is of their country's 'national interest'.

As per the latest development though, Israel has reportedly said they are not looking to hit Iran's oil facilities. Following this, American indexes such as Dow Jones, S&P 500 and Nasdaq fell sharply on Tuesday, October 15, 2024.

Three senior Biden administration officials told NBC News, that Israel is planning to limit its retaliatory strikes in Iran to military targets, and is not looking to hit oil or nuclear facilities of the Islamic country.

The news was met with a sharp decline in US WTI and Brent Crude by more than 4% each. US West Texas Intermediate futures, November expiry, slipped by 4.4% to $70.58 per barrel, while Brent's December expiry saw a 4.14% dip to $74.25 per barrel.

On the other hand, Prime Minister Benjamin Netanyahu's office said on Tuesday, said that his country will listen to the United States but will decide its actions according to its national interest, as per the statement attached to Washington Post.

Netanyahu revealed to President Joe Biden that Israel does not plan attacks on the nuclear or oil facilities of Iran, but will keep their retaliation till military. This is in the wake of Iran's barrage of missiles sent on October 1 on Israel soil, after Hezbollah's leader Hassan Nasrallah's assassination.

Israel's PM also said that their retaliation would avoid the perception of political interference in the United States.

However, Netanyahu has also rejected the option of 'CEASEFIRE' in Lebanon. Beirut and other Hezbollah bases in Lebanon are under heavy airstrikes and ground offence by Israel.

US Market On October 15:

Dow Jones: The Dow Jones Industrial Average or DJIA index closed at 42,740.42, down by 324.80 points or 0.75%.

Nasdaq Composite: The tech-heavy index ended at 18,315.59, lower by 187.10 points or 1.01%.

S&P 500: The index finished at 5,815.26, dipped by 44.59 points or 0.76%.

On the latest performance, Trading Economics said, Wall Street closed sharply lower on Tuesday, driven by weak earnings from ASML, which led to a broad selloff in chipmakers, and a sharp decline in oil prices that pressured energy stocks.

Trading Economics data highlighted that ASML shares plunged 16.5% after cutting its outlook, pressuring other chip makers including Nvidia (-4.5%), Broadcom (-3.5%), AMD (-5.2%) and Intel (-3.3%). Energy stocks were under pressure as Exxon Mobil (-3%) and Chevron (-2.7%) declined on the back of a sharp drop in oil prices. Additionally, UnitedHealth fell 8.2% after issuing a weaker earnings forecast. In contrast, Bank of America gained 0.5% after reporting stronger-than-expected third-quarter profits and revenue. Apple added 1.1% after hitting an all-time intraday high of $237.49, following reports that indicated strong demand for Apple's previous models, bolstered by the iPhone 16 launch.