U.S. stocks in New York closed sharply lower amid escalating conflicts between Israel and Iran.
On the 13th (local time), according to the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed down 769.83 points (1.79%) at 42,197.79.
The Standard & Poor's (S&P) 500 Index fell 68.29 points (-1.13%) to close at 5,976.97, while the Nasdaq Composite Index closed down 255.66 points (-1.30%) at 19,406.83.
Escalating conflicts in the Middle East have cooled investor sentiment. This follows Israel's airstrikes on Iranian nuclear facilities and Iran's retaliatory attacks firing hundreds of missiles toward Israel.
The volatility index (VIX) known as the so-called 'fear index' at the Chicago Board Options Exchange (CBOE) recorded an increase of 2.80 points to 20.82, rising above the 20 level.
Elias Haddad, chief market strategist at Brown Brothers Harriman, noted, 'If this leads to a blockade of the Strait of Hormuz, it will have a significantly severe impact on global markets.'
By sector, airline stocks such as Delta Air Lines (-3.76%) and United Airlines (-4.43%) fell amid rising oil prices and concerns over decreasing passenger numbers.
In contrast, stocks of energy corporations such as ExxonMobil (2.18%) and Diamondback Energy (3.74%) as well as defense contractors Lockheed Martin (3.66%) and RTX (3.34%) rose.
Meanwhile, at the New York Mercantile Exchange, the near-term futures price of West Texas Intermediate crude oil closed at $72.98 per barrel, up 7.3% from the previous session.