The Dow Jones Industrial Average fell more than 500 points on Tuesday after Iran-backed Houthis attacked Saudi Arabia and Iran and the U.S. traded strikes on oil tankers over the weekend. Oil prices climbed off their session highs, Amgen sank on a competitor's failed drug trial, and the S&P 500 and Nasdaq also closed lower.
The Dow industrials dropped more than 500 points, or 1% on Tuesday, marking a rough start to a holiday-shortened week. The sell-off followed an attack on Saudi Arabia by Iran-backed Houthis, which sent oil prices higher before they eased back from their session highs.
Weekend strikes rattle markets
Over the weekend, the U.S. hit three Iranian oil tankers after Iran launched ballistic missiles toward two Navy warships, including an aircraft carrier, according to U.S. Central Command. In retaliation, Iran said it targeted three other oil tankers for using what it claimed was an unauthorized route through the Strait of Hormuz and attacked several U.S.-linked ships, though it remained unclear if any vessels were hit. Operations at certain energy facilities in Saudi Arabia were also halted after the Houthi attacks wounded 73 people.
Oil edges higher, S&P and Nasdaq also fall
West Texas Intermediate crude futures rose less than 1% to about $92.30 a barrel, while Brent crude, the international benchmark, inched up to roughly $97.50 a barrel. The S&P 500 also skidded, dropping 0.3%, with financials and healthcare hit hardest and energy and utilities posting the best gains. The tech-heavy Nasdaq composite was down 0.1% but off its lows, helped by strength in artificial-intelligence stocks.
The 10-year Treasury yield rose 1 basis point to 4.8%. Bitcoin remained down nearly 1% but pared its loss to trade at around $78,700.
Amgen weighs on the Dow
Within the Dow, Amgen sank nearly 10% in heavy volume. The sell-off came after disappointing trial results for an experimental Novartis cardiovascular treatment were seen as a negative indicator for Amgen's own fledgling heart treatment, olpasiran; Novartis itself plummeted 14%. Caterpillar led blue chips with a gain of more than 1%, while Chevron's advance faded to less than 1%.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
