The three major U.S. stock indices closed lower across the board on the 23rd (local time), weighed down by a surge in international oil prices amid escalating military tensions between the U.S. and Iran.

While the selling pressure in artificial intelligence (AI)-related tech stocks—which drove the previous day's market plunge—has somewhat subsided, concerns that the Middle East conflict could reignite spread to other sectors, weighing heavily on investor sentiment.

On this day, the Dow Jones Industrial Average fell 652.82 points, or 1.23%, to close at 52,215.16.

The S&P 500 dropped 39.75 points, or 0.52%, to finish at 7,623.68, while the Nasdaq Composite declined 53.52 points, or 0.21%, to end at 25,955.34.

The primary catalyst for the market's weakness was the surge in international oil prices driven by escalating military tensions in the Middle East.

Brent crude for December delivery rose 3.1% to settle at $116.72 a barrel, reaching its highest level since April 29.

West Texas Intermediate (WTI) also gained 3.8% to close at $103.27 a barrel.

Concerns intensified that the Middle East war could escalate again following reports that the U.S. and Israel are considering resuming airstrikes against Iran.

As the U.S. deploys additional troops to the Middle East, Iran has warned that if the U.S. and Israel resume airstrikes, it could target economic and civilian facilities in neighboring countries.

Notably, the selling pressure that was previously concentrated heavily in tech stocks spread to defensive sectors such as consumer staples, utilities, and healthcare.

Among individual stocks, credit card giant American Express fell more than 3%, exacerbating the Dow's losses.

American Express announced plans to lay off about 5% of its global workforce to prepare for the AI era.

Heavy equipment manufacturer Caterpillar dropped 2.4%, and investment bank Goldman Sachs fell 1.8%.

Conversely, selling pressure eased somewhat in tech stocks, which had plummeted the previous day over concerns regarding AI investment profitability and heavy financing burdens.

Semiconductor maker Micron Technology rose 2.5%, and AMD gained 1.7%.

U.S. Treasury yields rebounded as a reaction to the previous day's sharp drop (surge in bond prices).

The yield on the benchmark 10-year U.S. Treasury note rose to around 4.99%.

International gold prices, typically viewed as a safe-haven asset, also declined.

Spot gold prices fell below $4,000 per ounce during the session, hitting their lowest level in about three months.

The drop is attributed to growing expectations of potential additional interest rate hikes by the Federal Reserve due to inflation concerns driven by surging oil prices, which diminished the investment appeal of gold since it does not yield interest.

Additionally, some investors facing margin calls following the previous day's tech stock plunge sold off gold to secure cash, which acted as another downward factor.

[ⓒ Global Economic Times. 무단전재-재배포 금지]