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US stock market takes a dive as defense & oil shares soar after Soleimani’s killing in US strike | US stock market takes a dive as defense & oil shares soar after Soleimani’s killing in US strike |
(about 5 hours later) | |
Dow Jones and S&P 500 stock indexes posted their biggest losses in a month after a US airstrike killed Iran’s Quds Force chief Qassem Soleimani, tempered only by the buoyant mood of defense and oil-related shares. | Dow Jones and S&P 500 stock indexes posted their biggest losses in a month after a US airstrike killed Iran’s Quds Force chief Qassem Soleimani, tempered only by the buoyant mood of defense and oil-related shares. |
Wall Street stocks went down at the news of the assassination of Soleimani, an influential general who led the Islamic Revolutionary Guard Corps (IRGC) Quds Force. His death in a Thursday night attack at Baghdad International Airport also claimed the lives of nine other people, including senior Iraqi militia officials. | |
As markets closed on Friday, the Dow Jones Industrial Average shed 233.92 points or 0.8 percent, in what was its biggest single-day drop in a month. The S&P 500 did not fare much better, plummeting more than 0.7 percent to close the day at 3.234.85 as renewed fears over of a large-scale conflict potentially breaking out in the Middle East soured investor mood. | |
Defense and aerospace shares surged, however, with Northrop Grumman (NOC) stocks rising 5.45 percent. Lockheed Martin, the maker of the beleaguered F-35 jets, saw its stocks jump 3.63 percent, their best showing in half a year. Missile-maker Raytheon also rallied at the news, adding around 1.5 percent. | Defense and aerospace shares surged, however, with Northrop Grumman (NOC) stocks rising 5.45 percent. Lockheed Martin, the maker of the beleaguered F-35 jets, saw its stocks jump 3.63 percent, their best showing in half a year. Missile-maker Raytheon also rallied at the news, adding around 1.5 percent. |
Oil and gold stocks were also jubilant. Brent crude leaped 3.5 percent to over $68 a barrel, while US crude climbed 3.1 percent to reach $63.05 a barrel. | |
The US attack drove up gold prices, too. They rose to the highest level in four months. | The US attack drove up gold prices, too. They rose to the highest level in four months. |
The mixed response of the markets comes after US stocks posted all-time highs on Thursday, with the Dow adding over 300 points. | |
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