Market sell-off due to Middle East tensions

What happened: On April 23, global markets sold off due to escalating Middle East tensions. The S&P 500, Dow Jones, and Nasdaq all closed lower, with the S&P 500 down 0.42%. This was driven by developments in the Iran War, specifically the seizure of an Iranian vessel and drone attacks on U.S. military ships. Oil prices surged to record levels, with crude oil reaching $114 per barrel, as global shippers refused transit without safety guarantees.

Market impact: Energy stocks initially benefited from the oil price surge, but broader markets sold off due to geopolitical risk. Tech stocks, which have led the market's recent rally, were particularly weak. The CAC 40 in France fell 1.4%, and Swiss stocks shed over 1%. Futures pointed to a lower open on Wall Street, with the S&P 500 and Nasdaq 100 futures down 0.7% and 0.8% respectively. High-beta space stocks like AST SpaceMobile (ASTS) and Rocket Lab USA (RKLB) also declined amid geopolitical anxiety.

What to watch next: Investors await U.S. jobs data and earnings reports, which could shift focus away from geopolitical risks. Key earnings include Microsoft (MSFT) on April 25 and Alphabet (GOOGL) on April 26. Additionally, any developments in the U.S.-Iran conflict, such as further escalation or de-escalation, will continue to drive market sentiment.