U.S. stocks fell in pre-market trading after the United States and Israel entered into conflict with Iran over the weekend.
The Invesco QQQ exchange-traded fund (ETF), which tracks the Nasdaq 100 index, was down 1.5%, although early losses began to moderate, suggesting that initial concerns may have been somewhat exaggerated.
A Saudi oil refinery was hit by the Iranian response, pushing WTI crude oil up to $75 per barrel. It was recently trading below $72, but remains up 8% in the last 24 hours.
Gold rose more than 2% in the past day to $5,400 an ounce, putting it within reach of its all-time high near $5,600 as investors sought traditional safe-haven assets. He also backed away after an initial push.
Bitcoin has held up, trading above $66,000 and gaining around 1% in the past 24 hours. This marks a slight divergence from its recent correlation with software stocks, as the iShares Expanded Tech-Software Sector ETF (IGV) is down about 1%.
Among crypto-related stocks, Strategy (MSTR), the largest publicly traded company holding Bitcoin, was little changed. Crypto-exchange Bullish (BLSH), the parent company of CoinDesk, is down 4%, while AI-focused miners Cipher Digital (CIFR) and IREN (IREN) are both down around 3%. Crypto exchange Coinbase (COIN) is down 2%.
The conflict pushed the US Dollar Index (DXY) to 98.2. At the same time, the S&P 500 Volatility Index (VIX) and the US Bond Market Volatility Index (MOVE) are up more than 10%, reflecting elevated market uncertainty.
