US markets slump after energy prices hit one-year high; Bloodbath in Asian market enters second day

The global markets continued to remain in a volatile state as the war in the Middle East escalated further. The US markets closed fairly lower after recouping the majority of the intraday losses on Tuesday. The NASDAQ and S&P500 closed 1% lower, while the Dow Jones fell 0.8% after recouping from nearly 2.5% losses in the intraday.

The crude oil prices cooled off after President Trump announced providing US Naval support in escorting oil tankers from the Strait of Hormuz. The Brent crude oil prices cooled off from the $85 per barrel level to nearly $80 per barrel. Similarly, the WTI crude oil prices fell below the $75 per barrel mark on Tuesday.

The sharp jump in crude oil prices has raised the expectations for inflation back above the agreed target levels of 2%. Consequently, the US dollar index jumped to nearly 99 against the basket of six different currencies. The US 10Y also crossed 4.05% mark after jumping nearly 4% in two trading sessions as investors trimmed their bets on equities and precious metals.

In the stock-specific news, shares of Blackstone Inc fell as much as 7% on Tuesday after its private credit fund faced pressure for redemptions amid worries around the AI trade. The fund holds 25% of the portfolio as loans to software firms. The firm allowed 8% of the investors to redeem their funds from the private credit fund.

The Asian markets continued their fall for the second consecutive session as jitters of the Middle East crisis broadened across the globe. The Korean indices plunged nearly 11% in two trading sessions, while the Japanese indices are trading over 3.3 lower, falling nearly 10% in two days. Sharp spike in crude oil prices worried the global investors as they trimmed their bets from the Asian economies.