You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • World Cup defeat hurts stocks
    Argentina and Germany face off in the World Cup final on Sunday and investors in both countries will do well to be alert to potential drops on their stock markets the day after in case of defeat.
  • Big Tobacco companies in merger talks
    Big Tobacco may soon get smaller. The makers of Camel and Newport cigarettes said Friday they are in talks to combine two of the nation’s oldest tobacco companies. A deal between Reynolds American Inc.
  • Jobs coming to Kosciusko
    Kosciusko County will be getting a boost to its employment base after a business requested a $22 million tax abatement this week for new equipment.
Advertisement
Associated Press
Specialist James Sciulli works on the floor of the New York Stock Exchange on Tuesday when the Dow Jones industrial average fell 170.33 points and the S&P’s 500 index fell 26.30.

Tension in Syria takes toll on US stock market

– Fears of an escalating conflict in Syria rippled across financial markets on Tuesday, sinking stocks, lifting gold and pushing the price of oil to the highest in a year and a half.

The rising possibility of U.S. military strikes raised worries on Wall Street that energy trade in the region could be disrupted, raising fuel costs for consumers and business.

“If Syria becomes drawn out and becomes a long-term issue, it’s going to show up in things like gas prices,” said Chris Costanzo, investment officer with Tanglewood Wealth Management.

The Dow Jones industrial average fell 170.33 points, or 1.1 percent, to 14,776.13, the lowest in two months.

The Standard & Poor’s 500 index lost 26.30 points, or 1.6 percent, to 1,630.48 and the Nasdaq composite fell 79.05 points, or 2.2 percent, to 3,578.52.

“The law of unintended consequences and the history of previous military interventions in the region is not a recipe for political and economic stability,” said Neil MacKinnon, global macro strategist at VTB Capital.

The sell-off in U.S. stocks was broad. All 10 industry sectors in the S&P 500 index were in the red, and only 31 of the index’s 500 stocks rose. Utilities and other high dividend-paying stocks mostly escaped the selling.

The impact wasn’t just in stocks. Gold prices advanced and government bond prices jumped because traders see those investments holding their value better in times of uncertainty.

Gold rose $27, or 2 percent, to $1,420 an ounce while the yield on the benchmark U.S. 10-year Treasury note fell to 2.71 percent from 2.79 percent.

Advertisement