Major indices hit sessions lows, on rising tensions as Iran attacks neighbors, and damages oil regional infrastructure.

Earlier, a report from Euronews announced that the UAE intercepted a suspected missile attack.

As a consequence, oil prices pushed higher, lifting the energy sector (XLE) to the top of the leaderboard and making it the only sector in the green. Losses are widest in Materials (XLB) and Industrials (XLI) after last week’s post-earnings rally.

The 10-year yield has broken above 4.4% to the upside. This is also causing pressure on equities today.

On the economic front, factory orders came in at +1.47%, much stronger than expected at +0.6%. This is the fourth increase in the past five months, and the largest since November.