The S&P 500 slipped sharply on Thursday, falling 1.23% in early trade and erasing nearly $780 billion in market value, as investor sentiment weakened amid escalating geopolitical tensions involving Iran and aggressive profit booking across global markets.
The benchmark US index turned negative after a largely positive start to the session, as concerns over rising tensions between Iran and Western nations unsettled investors. Iran warned it would respond “like never before” to any potential attack, while the European Union confirmed its decision to label Iran’s Islamic Revolutionary Guard Corps (IRGC) a terrorist organisation. Adding to market unease, the IRGC announced plans to conduct naval drills in the Strait of Hormuz, a key global trade route.
Selling pressure intensified as investors moved to reduce exposure following strong recent gains in equities. Heavy profit booking on large volumes weighed on stocks, with declines accelerating once key intraday levels were breached.
The sell-off was broad-based, with several heavyweight stocks dragging the index lower. First Solar and Las Vegas Sands plunged over 13%, reflecting risk aversion across both cyclical and defensive segments of the market. Technology stocks also remained under pressure, amplifying losses across the index.
The S&P 500’s decline came alongside sharp moves in other asset classes, including gold, silver, and cryptocurrencies, underscoring a wider risk-off shift in global markets.
With volatility elevated and geopolitical uncertainty persisting, investors are now closely watching developments in the Middle East and broader market cues to assess whether equities stabilise or face further downside in the near term.
