Equities fell sharply amid rising geopolitical risks, higher crude prices, and weaker-than-expected US jobless claims data.
US stocks closed sharply lower as Middle East tensions escalated and oil prices surged. Crude futures settled at $92.19, up $5.36 or 6.17%, amid fears of further conflict in the region. Treasury yields also climbed, adding pressure on equities.
Initial jobless claims came in at 187K, below the expected 212K, signaling a still-tight labor market. The ECB left its deposit rate unchanged at 2.25%, as widely anticipated, while Canada reported flat retail sales growth for May.
Investors weighed President Trump’s warnings of a potential major attack and the Fed’s upcoming meeting, described as one of the most unpredictable in recent history.