By Mucahithan Avcioglu
ISTANBUL (AA) - US stock markets ended mixed Monday as investors weighed the risk of a broader Middle East conflict after US and Israeli strikes on Iran and Tehran’s subsequent retaliation.
The Dow Jones Industrial Average dropped by 0.15%, or 73.14 points, to close at 48,904.78.
On the other hand, the Nasdaq rose 0.36%, or 80.65 points, to 22,748.86, while the S&P 500 went up 0.040%, or 2.74 points, to 6,881.62.
The Volatility Index (VIX), also known as the "fear index," rose by 7.96% to 21.44 points.
The markets declined following joint US-Israeli strikes on Iran that began Saturday, reportedly resulting in the deaths of several senior Iranian figures, including Supreme Leader Ayatollah Ali Khamenei.
Tehran retaliated with drone and missile attacks aimed at Israel and at regional sites hosting US military forces, further intensifying tensions across the Middle East.
President Donald Trump said Monday that the current US military operation in Iran is expected to last four to five weeks but could go on for longer if necessary.
"We projected four to five weeks, but we have capability to go far longer than that. We'll do it," he told a White House ceremony about the US’s Operation Epic Fury, which began Saturday.
Trump said the operation is moving "ahead of schedule" but did not give further details.
Among the sectors most affected by rising tensions in the Middle East were airlines that suspended flights to the region.
Shares of US airline Delta fell 2.2%, United Airlines declined 2.9% and American Airlines was down 4.2%.
Shares of US defense companies advanced, with Lockheed Martin gaining 3.3%, RTX rising 4.7% and Northrop Grumman climbing 6% as investors sought exposure to the sector.
Energy stocks also posted solid gains. ExxonMobil rose 1.1%, while Chevron jumped 1.5% on expectations of tighter global energy supplies.
In contrast, travel and tourism-related companies declined amid heightened regional uncertainty.
Nvidia gained 2.9% after the firm announced a $4 billion investment into two US photonics players -- Lumentum and Coherent -- as it tries to strengthen both its research and development (R&D) pipeline and the supply chain needed for the next wave of AI data-center expansion.
Separately, a federal appeals court declined to pause Monday lawsuits seeking refunds for tariffs that the Supreme Court ruled last month were imposed by Trump illegally.
The administration had sought Friday to have the court delay issuance of any mandate for 90 days, but the Court of Appeals for the Federal Circuit instead denied the request and cleared the way for the lawsuits to continue at the US Court of International Trade.