Shares of industrial and transportation companies fell sharply as violence in the Middle East caused inflation fears to resurface.
"Geopolitical events, i.e. the Red Sea, could impact everything from general shipping costs [to] energy pricing," said JD Joyce, president of Houston financial advisory Joyce Wealth Management.
"So far, you're not seeing [oil prices rise], but both of those things could be inflationary assuming they come in higher. Then, of course, what if the conflict spreads or widen...then you could certainly see a greater potential of [inflation.]"
Enviva, the largest U.S. wood pellet exporter, missed a $24 million payment due to its bondholders Tuesday.
The New York Federal Reserve's Empire State Business Index, a gauge of factory activity in the state, plunged 29.2 points in January to negative 43.7.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-16-24 1723ET
