Tensions in the Middle East have escalated following President Trump's threats against Iran, which contributed to a surge in oil prices, with Brent crude futures rising 7.9% to $90.74 a barrel.
Concurrently, the Federal Reserve's recent meeting resulted in a split decision to maintain interest rates at 3.5%-3.75%, described by Chairman Kevin Warsh as a 'family fight,' indicating internal disagreements on future policy direction.
This uncertainty led to a notable decline in major stock indexes, with the Dow Jones Industrial Average dropping 1,153.18 points, or 2.19%, marking its worst performance since April 2025.
In the tech sector, Meta's stock plummeted nearly 10% after the company reported disappointing second-quarter earnings and guidance, with free cash flow decreasing significantly from $8.55 billion to $784 million year-over-year. Conversely, Microsoft shares rose 7% in after-hours trading following strong fiscal fourth-quarter results that exceeded expectations.
Overall, these developments reflect a volatile market environment influenced by geopolitical risks and mixed corporate earnings