Although the United States delayed the deadline for striking Iran's energy infrastructure, the month-long Middle Eastern conflict shows no signs of easing, affecting market sentiment. Wall Street's major indices are expected to open lower on Friday.
President Trump announced on Thursday an extension of the deadline for Iran to reopen the Strait of Hormuz or face the destruction of its energy facilities. Tehran had previously rejected a 15-point proposal by the U.S. to end the fighting. However, this delay failed to calm market sentiment, with oil prices rising again, and investors remaining skeptical about any agreement between the parties.
Against this backdrop, the stock market sentiment is clearly impacted by geopolitical tensions, with the S&P 500 and Nasdaq down for the fifth consecutive week, while the Dow records an increase this week. The S&P 500 and Nasdaq indices each fell by over 1% on Thursday, with the Nasdaq further slipping beyond a 10% drop, entering a correction territory.
