U.S. stocks plunged for a second session on Monday, led by financial and technology shares, as intensifying tensions between the U.S. and Iran pushed traders towards safe-haven belongings such as gold and government bonds.
After ending 2019 on a powerful note, Wall Avenue’s main indexes have been knocked off record ranges as the killing of a prime Iranian commander by America last week raised the specter of a new conflagration in Arab countries.
Tehran has threatened to avenge the death of its commander, Qassem Soleimani, while President Trump has warned that the U.S. would strike again, “perhaps in a disproportionate method”, if Iran retaliated.
Investors bought some of 2019’s star performers, including know-how stocks, which plunged 0.3%. Apple was down 0.4% after brokerage Needham downgraded to “buy” from “strong purchase”, while Microsoft further dipped 0.4%.
The Philadelphia semiconductor index, which soared around 60% in the 2019 year-end, was down 0.9%.
Massive lenders, including J.P. Morgan, Financial institution of America, and Morgan Stanley, have been down between 0.5% and 1.3%, as U.S. Treasury yields dropped.
The energy index increased 0.3% as Brent crude futures topped $70 a barrel after Trump also warned sanctions on Iraq if U.S. troops had been compelled to withdraw from the nation.