Stock Market Impact: The benchmark S&P 500 declined 2% to 7,254.87 points, the Nasdaq Composite plunged 3.4% to 25,055.57 points, and the Dow Jones Industrial Average slipped 0.9% to 50,310.16 points after President Donald Trump said the United States will respond to Iran’s attack that shot down an American helicopter.
Listed Companies and Sectors: AI‑related chip stocks rebounded after a sell‑off triggered by Broadcom’s weak quarterly results; OpenAI filed a confidential initial public offering (IPO) filing, adding to AI sector attention. Nuvalent shares surged after GlaxoSmithKline announced a $10.6 billion acquisition of the cancer‑drug maker. Vail Resorts shares fell after the company cut its full‑year outlook, citing low snowfall affecting ski‑resort visits.
Investment Flows: No specific foreign direct investment (FDI) or foreign portfolio investment (FPI) figures were disclosed; market sentiment was dominated by geopolitical risk and anticipation of upcoming U.S. inflation data.
Interest Rates, Inflation, and Liquidity: Benchmark U.S. 10‑year Treasury yields were down nearly 1 basis point, while the 2‑year yield dipped almost 2 basis points (US2YT=X -0.60%, US10YT=X -0.26%). Brent crude futures slipped 2.7% to $91.72 per barrel, easing concerns about energy‑driven inflation. Traders awaited the May Consumer Price Index (CPI) release, with markets pricing in at least one Fed rate hike this year due to robust labor market signals.
Fiscal or Monetary Policy: The upcoming CPI report is expected to guide Federal Reserve policymakers on future monetary‑policy adjustments; no direct fiscal measures were mentioned.
