Tuesday saw a significant downturn in the US stock market, primarily driven by soaring oil prices and escalating geopolitical concerns. The S&P 500 experienced a substantial 0.8 percent drop, almost completely wiping out its weekly gains. This decline followed indications of a potential intensification of the Israel-Iran conflict and signs of weakening in a key sector of the US economy.

The Dow Jones Industrial Average mirrored this negative trend, falling by 0.7 percent. The Nasdaq composite also suffered, closing down 0.9 percent. This widespread market slump reflects a growing unease amongst investors.

Adding to the market’s woes, Treasury yields decreased following a disappointing report on US retail sales, signaling potential economic slowdown. Crude oil prices surged over 4 percent, fueled by anxieties over disruptions to oil supply due to the ongoing conflict in the Middle East. The combination of these factors created a perfect storm for a significant market correction.