Chile’s main index falls more than 2% following the latest record streak

The Chilean stock market was also retreating due to profit-taking following recent gains. Meanwhile, Wall Street was down 1.7%, with investors buying dollars, bonds, and gold as safe havens.

Tensions escalated on Thursday in the Middle East, prompting investors to sell stocks both in New York and Santiago. As a result, the latter stock market abruptly halted its recent advances, with a sell-off affecting its main stock index.

The Chilean S&P IPSA was down 2.39% at 6,565.53 points, potentially ending its streak of three consecutive record highs. SQM-B (-3.38%), Latam (-3.38%), and Enel Chile (-3.37%) led the losses, with all 29 IPSA stocks trading in the red. If sustained, the index would experience its worst trading day since October 30 of last year.

The local stock market suffered significant losses, aligning with the majority of international equity markets. The IPSA’s risk-off mode is attributed to increased geopolitical tensions in the Middle East, specifically the possibility of Iran attacking Israel.

On Wall Street, the Nasdaq Composite was down 1.55%, the S&P 500 retreated 1.67%, and the Dow Jones fell 1.22%. Bond yields declined, the global dollar strengthened, and gold reached new highs amid the flight to safety. Brent crude oil jumped 0.82% to $90.47 per barrel, reaching highs not seen since October.

Israel anticipates a direct attack from Iran, which could happen as soon as this Saturday, according to sources cited by Bloomberg. The situation in the Middle East is particularly concerning, especially as the world awaits Iran’s response to the recent attack on its embassy in Syria.

All of this unfolds amid ongoing uncertainty in the markets regarding whether the Federal Reserve will indeed lower interest rates this year. Additionally, shares of JPMorgan (-5.08%) were declining from their highs as they disappointed with their first-quarter results, with net interest income slightly below estimates.