Global financial markets are experiencing significant turmoil as tensions escalate between the United States and Iran, coupled with fears of a U.S. government shutdown. The deployment of the U.S. aircraft carrier USS Lincoln to the Middle East has heightened concerns of potential military action against Iran, leading to a sharp decline in stock markets. The Nasdaq 100 fell by 2%, the S&P 500 by over 1%, and the Dow Jones by 0.5%. Cryptocurrency-related stocks were particularly hard hit, with MSTR dropping nearly 10% and COIN over 4%.
Safe-haven assets like gold and silver also saw dramatic declines, with gold plunging over $400 to around $5,155 and silver dropping 8% to just over $108. The cryptocurrency market mirrored these losses, with Bitcoin falling from $88,000 to around $83,000 and Ethereum briefly dipping below $2,800.
Domestically, the U.S. faces the threat of a partial government shutdown as Congress struggles to pass appropriations bills before the current resolution expires on January 31. The budget impasse, particularly over the Department of Homeland Security, adds to the market's uncertainty, exacerbating the financial instability amid geopolitical tensions.
Global Markets Plunge Amid U.S.-Iran Tensions and Shutdown Fears
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