Wall Street adopted a defensive stance as major indices closed in the red, with the Nasdaq dropping 1% amid a significant sell-off in the software sector. The S&P 500, DJIA, and Russell 2000 also recorded declines, driven by geopolitical tensions following Israel’s readiness to strike Iran, which has heightened market fears of military escalation in the Middle East.
The software sector was particularly impacted by disappointing earnings from ServiceNow, which saw its shares plummet 19% after underwhelming investors with its AI monetization strategy. Despite preliminary US PMI indicators beating expectations, the underlying inflationary pressures suggest a challenging economic landscape ahead. European markets displayed mixed results, with notable gains in the French CAC 40, buoyed by strong performances from STMicroelectronics and L’Oréal.
Market professionals should closely monitor geopolitical developments and sector-specific earnings reports, as these factors are likely to influence volatility and risk sentiment in the near term.
Source: xtb.com