Trump's Hardline Address Sparks Market Sell-Off as War Outlook Deteriorates

US stock-index futures plummeted more than 1% on Thursday after President Donald Trump delivered a hardline address that undermined expectations for an early reopening of the Strait of Hormuz and a resolution to the Middle East conflict. Futures tied to the S&P 500 Index dropped 1.4% by 7:32 a.m. in New York, while Nasdaq 100 contracts fell 1.9%, with mega-cap tech stocks dragging on the index. The market turmoil reflects heightened fears of prolonged instability in a critical global trade corridor. The speech, which emphasized a tougher stance on regional security, sent shockwaves through financial markets. Brent crude oil prices climbed above $109 per barrel as investors priced in the potential for continued disruptions to oil shipments through the Strait of Hormuz. Meanwhile, the Cboe Volatility Index (VIX) rose to approximately 27, signaling increased market anxiety. Yields on 10-year US Treasuries also climbed to 4.37%, as investors sought safer assets amid the uncertainty. The defense sector is likely to see renewed interest as governments prepare for extended military operations, while energy companies may face ongoing pressure from elevated oil prices. Tech stocks, particularly those with significant international exposure, are also vulnerable to further declines as global economic growth concerns intensify. The broader market remains on edge, with investors closely monitoring developments in the Middle East and the potential for further policy shifts under the Trump administration.