Stocks fell across the U.S., Europe and Asia on Thursday, while oil prices jumped after a report that the U.S. and Israel have plans for renewed strikes against Iran. A sell-off in technology shares led Asian markets lower, and China's CSI 300 entered bear-market territory.
U.S. equity futures slid Thursday as Dow futures lost 319 points, or 0.6%, while S&P 500 futures fell 1% and Nasdaq-100 futures dropped 1.6%. Declines in mega-cap names Meta Platforms and Tesla weighed on the market, alongside a jump in oil prices as geopolitical tensions rose.
Oil jumps on report of planned Iran strikes
Oil rose after The New York Times reported, citing sources, that the U.S. and Israel have plans for renewed strikes against Iran following next month's midterm U.S. elections. Brent crude traded 2.7% higher at $111.77 per barrel, and WTI advanced 2% to $99.25 per barrel.
Investors also turned to U.S. Treasurys as a safe haven. The 10-year Treasury note yield dropped 7 basis points to 5.069%, while the 2-year yield shed 6 basis points to 4.761%.
Tech sell-off drags Asian markets
Asian stocks tumbled on Thursday, led by a sell-off in technology shares. The MSCI All Country Asia Pacific ex-Japan Index fell over 2% to its lowest level in nearly three months.
Japan's Nikkei 225 reversed earlier gains to decline 2.6% to 62,907.84, and South Korea's Kospi was down 3.52% to 5,533.77.
China's CSI 300 fell 20% from its June peak, entering bear-market territory after declining for 10 consecutive weeks.
European shares open lower
In Europe, the Stoxx 600 was down 0.78% shortly after 8:10 a.m. in London. Basic resources shed 2.22%, leading losses, while banks slipped 1.93% and technology names were down 1.79%.
French borrowing costs added to the pressure. The yield on the 10-year OAT was up nearly 6 basis points to 5.0514%, after closing Wednesday around 5.02%, its highest level since 2002.
Hermès fell 6.3% after missing analyst expectations for third-quarter revenues.
Source: CNBC
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