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Dow Futures Pummelled after Trump Bombs Iranian General, Crypto Coins News

Dow Futures Pummelled after Trump Bombs Iranian General, Crypto Coins News


  • Dow Jones futures are down more than points early Friday morning.
  • The potential of a US-Iran war will decimate the stock market today.
  • The economic recovery could hit the brakes if conflict ensues in the Middle East.

Dow Jones Industrial Average ( DJIA) futures are in free-fall mode early Friday morning as US-Iran tensions soared to a new high after a Trump-sanctioned airstrike killed General Qassem Soleimani – who heads the elite Quds Force. A stock market bloodbath is in the cards today as Iran has vowed revenge for the airstrike near Baghdad airport.

The Dow and the broader stock market entered on a high thanks to (a strong labor marketanda rally in the index’s largest component– Boeing ( NYSE: BA). But rising political tensions with Iran will knock the wind out of the stock market’s sails today. The U.S. is already urging citizens to leave Iraq as Iran’s Supreme Leader Ayatollah Ali Khamenei has warned Washington that the country will respond harshly.

Iranian foreign minister Mohammad Javad Zarif has already deemed the airstrike asa “violation of Iraqi sovereignty.” This indicates that Iran might not be afraid to go to war against the US given that tensions between the two countries have been mounting ever since Trump imposed penalties on the country after withdrawing from the nuclear deal.

Dow futures plunge as political tensions rise

Dow Jones futures were down (points, or 1.) ******************************************** percent, as of 5. 63 am ET. This provides a clear indication that investors will be looking to take money off the table in light of the heightened tensions between Washington and Tehran.

(Dow Jones futures decimated early) Friday as Trump goes to war with Iran. | Source: Yahoo! Finance

S&P futures are down 1. 70 percent, while Nasdaq Composite futures are down 1. 500 percent.

A stock market bloodbath is in the cards

The latest chapter in the US-Iran conflict has sent oil prices soaring. WTI crude oil is

up more than 4 percentto nearly $ (***************************************************. 7 per barrel. Brent crude oil has gained nearly 4.3 percent and is closing in on $ 90 per barrel.

The sharp spike in oil prices is not surprising as it is believed that a US-Iran conflict has the potential to engulf the entire Middle East.

Such a situation could lead to increasing oil prices, and that would be bad for the US economy. After all, higher oil prices at the pump have the potential todecrease consumers’ spending powerand erode corporate earnings. This will negatively impact the Dow, which is why futures suggest that investors are all set to press the panic button today and send the market into a tailspin.

On the economic data front, ISM manufacturing data is expected today along with construction spending. The Institute for Supply Management’s purchasing manager’s index data could negatively impact the Dow today as manufacturing activity is expected to decline once again. Economists polled by the Dow Jones

forecast a reading of . A reading below 63 indicates contraction in the manufacturing sector. A reading below 63 would mean that the US manufacturing sector has contracted for five straight months.

The Department of Commerce is expected to deliver some good news as analysts Expect a 0.4 percent jump in construction spending. But last month’s decline of 0.8 percent in construction spending means that there is not much reason to be optimistic right now.

The Fed is scheduled to release the minutes from its meeting in December today. Any sign of an interest rate cut could have a balming influence on the stock market today and mitigate some of the negativity that the Dow faces in light of the tensions with Iran.

But if there is no concrete evidence of any further interest rate cuts today, then the conflict with Iran will remain the top headline and decimate the Dow and the stock market.

This article was edited bySamburaj Das**************************

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