Wall Street took an early nosedive amid fears over the Middle East conflict's fallout. As the war hit its fourth day, President Donald Trump warned it could last four to five weeks or much longer. Defense Secretary Pete Hegseth called it a generational chance to reshape the region, without specifying an end.

Crude oil prices spiked further after Iran closed the Strait of Hormuz in retaliation to U.S. and Israeli strikes, threatening any passing ships. Attacks hit refineries like Saudi Aramco's Ras Tanura facility, worsening supply woes. Analyst Dan Coatsworth at AJ Bell noted sustained high energy prices risk fueling inflation, higher rates, and equity market pain.

Gold stocks continued to be substantially weak amid a sharp pullback by the price of the precious metal. The NYSE Arca Gold Bugs Index plummeted by 8.0%, pulling back further off the record closing high set last Friday. Semiconductor stocks were significantly weak, as reflected by the 4.6% plunge by the Philadelphia Semiconductor Index. Steel, computer hardware, networking and oil service stocks also saw considerable weakness, while software stocks bucked the downtrend.

Asia-Pacific stocks moved sharply lower. Japan's Nikkei 225 Index plunged by 3.1% while China's Shanghai Composite Index slumped by 1.4%. The major European markets too substantial moved downside while the French CAC 40 Index dove by 3.5%, the German DAX Index plummeted by 3.4%, and the U.K.'s FTSE 100 Index tumbled by 2.8%.

In the bond market, treasuries climbed well off their worst levels but still ended the day slightly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by nearly a basis point to 4.05% after reaching a high of 4.11%.

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