Despite President Donald Trump's reassurances that the Gulf nations have sufficient weapons stockpiles, South Korea's Kospi experienced its worst day on record, dropping 12% on Wednesday. Asian markets saw losses across the board, while U.S. markets also fell. The S&P 500 slipped about 0.94%, while the Dow lost 0.83%. At one point, the Dow fell more than 1,200 points and the Nasdaq Composite closed down 1.02%. The Middle East conflict continues to escalate and global central banks are facing tests as the conflict widens, raising concerns about potential oil shock and inflation risks. China's factory activity faltered in February due to an extended holiday, with the official manufacturing purchasing managers index falling to 49 in February, missing economists' forecast for 491.