Markets sell off worldwide as further conflict looms in the Middle East and Elon Musk cuts capex guidance

Markets turned sharply lower as traders sold stocks across the world, with declines recorded in Asia and Europe and U.S. equity futures pointing to a weak start in New York.

U.S. futures signal pressure

S&P 500 futures were down by more than 1% before the New York open. The decline was steeper in futures tied to the technology-heavy Nasdaq, which fell 1.82%.

The moves showed a broad deterioration in market sentiment rather than weakness confined to a single region or index. With trading lower across major markets, investors were facing a more negative backdrop at the start of the session.

Geopolitical concerns dominate

The sell-off came as the possibility of further conflict in the Middle East weighed on trading. The source material does not provide details about the potential conflict or identify how long the market reaction may last.

The supplied headline also points to Elon Musk cutting capital-expenditure guidance, although no additional information about that guidance or its effect on markets was provided.

What to watch

For now, the clearest market signal is the breadth of the decline: Asia and Europe were largely lower, while U.S. futures fell ahead of the opening bell. Further direction will depend on how trading develops after the New York market opens and whether the negative mood persists.