Iran prepares to launch missiles? US stocks fall due to escalating tensions in the Middle East and soaring oil prices, causing BTC to drop to 62K

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Stock Market Falls as Geopolitical Tensions Rise

This Tuesday, the U.S. stock market experienced a significant decline as tensions escalated in the Middle East, casting a shadow over the previously strong quarter. The Dow Jones Industrial Average fell by 302 points, around 0.7%, the S&P 500 Index dropped by 1%, and the tech-heavy Nasdaq Composite Index declined by 1.4%.

Iran Ready to Launch Missiles? Middle East Situation Pushes Oil Prices Higher

Part of the stock market decline was driven by the surge in West Texas Intermediate (WTI) crude oil prices. The rise in oil prices was due to a senior White House official revealing "indications" that Iran is preparing to launch a missile directly targeting Israel. This news sparked market panic, causing the so-called "fear index" on Wall Street — the Cboe Volatility Index (VIX) — to rise above 20, reflecting growing anxiety among traders.

Market Downturn Affects Most Stocks

On Tuesday, around 80% of stocks in the S&P 500 Index fell, indicating a widespread market downturn. However, energy stocks diverged from this downward trend, boosted by the Middle East news. The S&P 500 energy sector rose by over 1%, contrasting with the struggles in other market sectors.

Tech Stocks Hit Hardest

The technology sector took a particularly hard hit, leading to a larger decline in the Nasdaq Index compared to the Dow and S&P 500. Major tech giants like Apple and Tesla saw their stock prices drop by over 2%, while NVIDIA's decline exceeded 1%. Notably, Meta Facebook's parent company bucked the trend, with its stock price nearing historic highs, demonstrating resilience amid the widespread selling in the tech sector.

U.S. to Release Nonfarm Payrolls Report

Investors are currently focused on upcoming economic indicators, particularly the September nonfarm payrolls report set to be released on Friday. This report could be a significant factor influencing market trends and impacting major stock market indices.

The recent market fluctuations highlight geopolitical developments, especially those affecting key industries such as energy, and how they have a broad impact on investor sentiment and stock market performance.

Bitcoin Falls to $62K Alongside Stock Market Decline

Following the news, Bitcoin also dropped, falling from the $63K level to $62K.