Trump's deadline approaching, market "first collapse for respect", Nasdaq falls more than 1%, oil prices surge

As the key deadline approaches for the US's actions against Iran, global financial markets have seen significant volatility, with pressure on US stocks and a sharp increase in oil prices. As of the trading session on Tuesday, the Dow fell more than 200 points, a decrease of about 0.5%; the S&P 500 index fell by 0.71%; and the Nasdaq fell over 1%. With escalating risks from GEO Group Inc, investor risk appetite has noticeably decreased. US President Trump had set a final deadline, demanding that Iran re-open the Strait of Hormuz by 8pm Eastern Time on Tuesday, or face attacks on its critical infrastructure such as power and bridges. However, recent statements and multiple reports indicate that the likelihood of reaching an agreement in the short term is decreasing. Trump even warned that "civilization may disappear tonight." Amidst the tense situation, the US has initiated military actions. According to two US officials, before the final deadline arrived, the US conducted strikes on military targets in Iran's Qeshm island early Tuesday morning, targeting over 50 military objectives, but not involving oil infrastructure. At the same time, Iran's stance has become stronger. According to reports from Iranian official media, Tehran has closed all diplomatic and indirect communication channels with the US, further narrowing the negotiating space. The commander of the Aerospace Force of the Islamic Revolutionary Guard Corps in Iran stated that the war has entered a "new phase" and deployed new missile systems, doubling the scale of attacks. As a result, global markets have experienced intense volatility. Energy prices have risen rapidly, with US West Texas Intermediate (WTI) crude oil futures rising by about $4, a 3.6% increase, approaching high levels; Brent crude oil has also maintained a high level. Gold prices briefly plummeted, with a single-day drop of nearly $40. Although negotiations have not completely collapsed, markets are generally pessimistic about reaching a comprehensive agreement in the short term. Analysts point out that with diplomatic channels closed and military confrontation escalating, the risk of conflict spillover has significantly increased, and the situation in the Strait of Hormuz will remain a core driving factor for future market volatility. UBS Group AG has downgraded its optimistic expectations for the stock market. The bank has lowered its 2026 target for the S&P 500 index from 7700 points to 7500 points, and advised investors to reduce their risk exposure to energy-sensitive markets, while still emphasizing not to completely withdraw from risk assets. In terms of individual stocks, in the technology sector, Broadcom Inc. (AVGO.US) has shown relative strength, benefiting from expanding artificial intelligence cooperation with Alphabet Inc. Class C and Anthropic, with the stock price rising over 3% against the trend.