In the three months ending September, stock markets experienced significant volatility as traders reacted to the ongoing conflict in the Middle East, particularly the standoff between the U.S. and Iran. The S&P 500 index rose by 2.03%, while the Dow Jones Industrial Average fell by 1.9%, and the Nasdaq Composite increased by 2.2%, indicating a slowdown in the previous quarter's rally.
This mixed performance reflects a broader pivot away from AI stocks, which faced profit-taking and concerns over competition and financing. Notably, Nvidia and Microsoft saw substantial gains of over 14% and 37.5%, respectively, due to strong financial results, while Oracle and Broadcom declined by more than 6%.
Outside the U.S., market performance varied, with South Korea's Kospi index dropping nearly 20%. The bond market faced a sell-off, with U.S. Treasury yields reaching their highest levels in over two decades, driven by inflation concerns linked to the Iran conflict.
Oil prices surged, with Brent crude rising 42% to $103.53 per barrel, as geopolitical tensions continued to impact supply expectations. The U.S. dollar index remained stable, reflecting a trend towards safe-haven assets amid rising global bond yields. Analysts from UBS and BlackRock maintain a positive outlook on equities, suggesting a diversified investment approach across sectors and regions