Global stock markets tumbled Tuesday as the outbreak of war with Iran over the weekend erased the prior day's modest relief rally. The Nasdaq Composite hit session lows, down 2.5%. The S&P 500 fell 2.3%. European benchmarks fared even worse: Italy's IBEX 35 plunged 5.2%, while Germany's DAX dropped 4.1%.
Precious metals crushed, crude surges
Safe-haven assets that had rallied to record highs in recent weeks also took a hit. Gold slid 4.3%, silver lost 7.5%, and platinum cratered 11.3%. WTI crude oil continued its surge, adding another 8% to reach $77 per barrel. The classic "flight to safety" narrative failed to support gold amid across-the-board deleveraging.
Bitcoin and major cryptos show relative strength
After a relentless five-month decline, crypto markets displayed a flicker of resilience. Bitcoin traded at $68,000, down only 1% over 24 hours and more than 2% above its worst intraday level. Ether (ETH), Solana (SOL), and XRP (XRP) also recovered from session lows after modest daily losses.
Crypto stocks under pressure but lagging broader bloodbath
Shares of crypto‑adjacent firms did not enjoy the same bounce. Robinhood (HOOD) sank 7%, Coinbase (COIN) fell 5%. Strategy (MSTR) and crypto platform Bullish (BLSH) each declined 4%. Stablecoin issuer Circle (CRCL) held somewhat firmer but still slipped about 1%.
Analyst: Bitcoin absorbs shocks as weekend-tradable asset
James Butterfill, head of research at CoinShares, noted: "Historically, bitcoin, as the only liquid asset that also trades on weekends, has absorbed shocks during periods of forced risk reduction. This time, the price development was constructive — bitcoin gained despite increasing instability … This divergence is significant. The absence of significant liquidations despite rising yields and geopolitical tensions suggests that positioning is adjusted compared to previous episodes."