The New York Stock Exchange declined across the board due to uncertainties in US-Iran negotiations

On the day before the expiration of the ceasefire time limit between the United States and Iran, uncertainties surrounding the second ceasefire/ending-the-war negotiations increased, and all three major indices of the New York stock market fell across the board on the 21st local time.

On that day, investors focused on the possibility that the situation in the Middle East could destabilize again. Although there was hope that the US and Iran might hold additional talks, with the ceasefire deadline drawing near and negotiations progress not receiving clear confirmation, the overall market was filled with caution. Geopolitical risk is usually a factor that lowers investors’ risk appetite, and its impact was also interpreted as being reflected in stock prices.

All of the representative indices of the New York stock market closed weakly. The Dow Jones Industrial Average fell 293.18 points (0.59%) from the previous trading day, closing at 49,149.38 points. The S&P 500, centered on large-cap stocks, declined 45.13 points (0.63%), closing at 7,064.01 points; the Nasdaq index, centered on technology stocks, also fell 144.43 points (0.59%), closing at 24,259.96 points.

The market showed a trend that was more sensitive to diplomatic and security variables than to corporate earnings or monetary policy. This is because if tensions in the Middle East escalate, it may trigger knock-on effects affecting international oil prices, prices, and global trade costs. Therefore, before the negotiation outcome is confirmed, investors may be inclined to reduce stock holdings or move part of their funds into safe assets.

This trend may change in the future depending on whether any actual progress is made in subsequent US-Iran negotiations. If uncertainty surrounding the talks is eased, investor sentiment could rebound; but if tensions rise again, volatility in the New York stock market could also increase in the short term.