**Market Update: Stocks Slump Amid Rising Geopolitical Tensions**
Stocks took a significant hit during trading on Tuesday, surrendering gains from the previous session, which had ended mostly positive. The major indices have all turned downward, with the Dow Jones Industrial Average and the S&P 500 pulling back from their recent record highs.
As of now, the major averages are off their session lows but remain decisively in the red. The Dow has dropped 246.18 points, or 0.6%, to 42,083.97. The Nasdaq has plunged 302.90 points, or 1.7%, to 17,886.27, and the S&P 500 is down 59.77 points, or 1.0%, at 5,702.72.
The downturn on Wall Street follows heightened concerns over escalating Middle East tensions. A senior White House official disclosed that the U.S. has strong indications that Iran is preparing an imminent ballistic missile strike against Israel.
"We are actively supporting defensive measures to protect Israel from this attack. A direct military act from Iran against Israel will entail severe repercussions for Iran," the official stated.
This potential threat from Iran comes in the wake of Israel's ground operations against the Iranian-supported militant group Hezbollah in southern Lebanon.
The news has driven crude oil prices sharply higher, with November crude futures surging $2.01, or 3.0%, to $70.18 per barrel.
Additionally, worries about the economic impact of a dockworkers’ strike across U.S. East and Gulf Coast ports are adding to Wall Street's woes.
Approximately 45,000 dockworkers went on strike after the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) failed to agree on a new Master Contract.
ILA union members began their strike at midnight, rejecting a wage offer from the Ocean Carriers, represented by USMX, deeming it unacceptable.
### Sector Performance
Semiconductor stocks are among the worst performers, with the Philadelphia Semiconductor Index plunging 2.5%. Computer hardware stocks are also showing considerable weakness, as evidenced by the 2.4% drop in the NYSE Arca Computer Hardware Index. Banking stocks have similarly moved lower, dragging the KBW Bank Index down by 2.0%.
Networking and software stocks have suffered significant declines, contributing to the sharp drop in the tech-heavy Nasdaq. Airline and telecom stocks also face notable losses. In contrast, energy stocks are defying the trend, buoyed by the substantial rise in crude oil prices.
### Global Markets
Overseas, Asia-Pacific stock markets delivered mixed results on Tuesday, with several major markets closed for holidays. Japan's Nikkei 225 Index climbed 1.9%, while Australia's S&P/ASX 200 Index fell 0.7%.
European markets also displayed mixed performance after early gains. The U.K.'s FTSE 100 Index is up 0.2%, while Germany's DAX Index is down 0.8%, and France's CAC 40 Index has decreased by 1.0%.
In the bond market, U.S. treasuries surged amid concerns over geopolitical tensions. Consequently, the yield on the benchmark ten-year note fell 8.4 basis points to 3.718%.
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This market update provides a holistic view of the current financial climate, capturing the essence of the original content while emphasizing key market movements and geopolitical factors.
