U.S. stock markets faced a significant downturn, with the Dow dropping over 200 points in early trading as traders reacted to escalating tensions in the Middle East. The Nasdaq and S&P 500 also experienced declines, leading to concerns over the impacts on economic stability. Market participants are digesting mixed jobs reports and manufacturing data, while oil prices have spiked in response to reports surrounding Iran. Analysts suggest that these geopolitical developments are contributing to a broader retreat in global markets, with specific vulnerabilities in sectors closely tied to shipping and energy.