Stocks opened slightly higher Monday morning, with the Dow Jones Industrial Average largely flat as oil prices remained muted amid ongoing concerns of a potential escalation in the Middle East conflict.
While cryptocurrencies bore the brunt of the sell-off in risk assets over the weekend, stocks looked likely to shrug off the initial impact of the United States’ strikes on Iran’s nuclear sites. This saw the blue-chip U.S. index Dow Jones Industrial Average open 15 points up, while the benchmark index S&P 500 was up 0.14%.
The Nasdaq Composite edged 0.18% higher as investors weighed sentiment that the U.S. wasn’t looking to further escalate tensions with Iran.
U.S. enters Iran-Israel conflict
Stocks had edged higher last week after President Donald Trump said he had given Tehran two weeks to negotiate a nuclear deal. But the U.S. went on to strike Iran’s nuclear sites, timing the attacks for the weekend while equities remained closed.
As the U.S. launched attacks on Iran’s nuclear sites in Fordow, Isfahan, and Natanz on Saturday, the move took investors by surprise.
“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan. All planes are now outside of Iran air space. A full payload of BOMBS was dropped on the primary site, Fordow,” Trump posted on Truth Social.
Crypto tanked as Bitcoin (BTC) fell to lows of $98,300. Meanwhile, oil prices briefly spiked amid nerves that a blockade on the Strait of Hormuz was imminent. But with no blockade as of Monday’s market open, investor concern of a swift retaliation has not played out. The overall market outlook is one of investor caution, with the latest reports suggesting Iran’s retaliatory attacks against U.S. forces could come as soon as a “day or two.”
Meanwhile, BTC has recovered to above $101,000, while oil prices have pulled back to around $74 a barrel. Elsewhere, gold has edged lower as the flight to havens dipped.
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