Stock indices finished mixed yesterday. The S&P 500 rose by 0.04%, the Nasdaq 100 added 0.36%, while the Dow Jones Industrial Average slipped by 0.15%.

Pressure returned to futures during the Asian session. Asian equities fell for a second day as an escalation in the Middle East increased investors' reluctance to take risk, dragging US and European index futures lower. The MSCI Asia-Pacific index dropped by about 2%, marking the region's worst two-day stretch in 11 months after US and Israeli strikes on Iran. South Korea led losses, with the Kospi plunging by more than 5% after markets reopened following the holidays.

According to Vantage Point Asset Management, investment concerns are less about Iran itself than about whether the conflict could escalate into a broader episode causing correlated losses across markets. The firm added that while markets had been trading as if the confrontation would be relatively short, that view might be overly optimistic.

After the close on Tuesday, President Trump said the United States would continue military action against Iran "as long as it takes," laying out four objectives he said would reduce the threat from Tehran. The comments raised fears of a more protracted conflict, which hit risk assets.

As a further sign of rising tensions, Iran intensified retaliatory strikes, attacking the US embassy in Riyadh and threatening to close the Strait of Hormuz — a critical route for oil and gas shipments. Brent crude topped $79 per barrel after jumping by more than 7% on Monday.

Volatility is forcing investors to lock in profits in promising markets and sectors such as technology after the AI-driven mania. Major chip and hardware names, including Samsung Electronics, SK Hynix, and TSMC, were the largest drags on the regional index. Still, South Korea's Kospi and Taiwan's Taiex remain among the year's best performers globally, up roughly 42% and 20% year-to-date, respectively.

If shipping disruptions in the Strait of Hormuz persist, Asian markets — trading at record highs — could face continued pressure. Any further supply squeeze could quickly push costs higher, squeeze corporate profits, stoke inflation, and hit risk assets, triggering sell-offs on US exchanges as well.

As for the S&P 500 technical analysis, buyers need to overcome the immediate resistance level of $6,819 to gain renewed upside momentum and open the way to $6,837. Gaining control of $6,854 would further bolster the bullish case. On the downside, buyers should defend around $6,801. A break below that level would quickly bring the instrument back down to $6,784 and could open the path to $6,769.