Market Turmoil as Wall Street Faces Uncertainty Amid Iran Conflict
NEW YORK (AP) — In a volatile session Thursday, Wall Street saw significant declines while oil prices surged as renewed uncertainty surrounded the ongoing conflict with Iran.
The S&P 500 experienced a sharp drop of 1.7%, marking its most significant single-day loss since January, and is on the verge of its fifth consecutive week of declines, a streak not seen in nearly four years. The Dow Jones Industrial Average fell 469 points, or 1%, and the Nasdaq composite plummeted 2.4%, crossing the 10% threshold below its record high from earlier this year, a decline known in the financial world as a “correction.”
Global markets mirrored this downturn, with declines reported across Asia and Europe. The week began with optimism, spurred by President Donald Trump’s comments about productive talks aimed at resolving the conflict. However, Iran refuted the claims of direct negotiations and rejected a U.S. ceasefire proposal delivered via Pakistan.
Amid ongoing hostilities, the U.S. is deploying additional troops to the region, while Iran is exerting control over the critical Strait of Hormuz. This strategic waterway, a vital passage for roughly 20% of the world’s oil, faces potential disruption as Iran possibly establishes a “toll booth” for tankers.
The price of Brent crude oil rose 4.8% to $101.89 per barrel, climbing from pre-war levels of around $70. Similarly, U.S. crude increased 4.6% to $94.48 per barrel.
President Trump, expressing impatience, stated on social media, “They better get serious soon, before it is too late,” adding, “there is NO TURNING BACK, and it won’t be pretty!”
Later, as markets closed, Trump tempered his rhetoric, announcing a delay in his threat to target Iranian power plants until April 6 to allow for further negotiations, despite media reports to the contrary.
This announcement prompted a slight retreat in oil prices, with Brent crude edging back toward $100 per barrel, and Treasury yields easing after earlier spikes. High Treasury yields, which have recently surged to 4.43% from 4.33% the previous day, are raising borrowing costs for mortgages and loans, potentially slowing the economy.
In economic data, the Labor Department reported a slight uptick in unemployment claims, though figures remain low by historical standards. A cooling job market might typically lead the Federal Reserve to cut interest rates, but concerns over inflation, exacerbated by rising oil prices, have dampened such prospects for this year.
Technology stocks bore the brunt of Thursday’s sell-off. Major players like Meta Platforms and Alphabet experienced significant losses of 8% and 3.4%, respectively, following a jury verdict in a social-media addiction trial. Other tech giants such as Nvidia and Amazon also saw declines, while Apple managed a slight gain.
In the industrial sector, Commercial Metals dropped 4.7% due to lower-than-expected quarterly profits, impacted by adverse weather conditions, though market conditions remain favorable according to CEO Peter Matt.
The S&P 500 concluded the day at 6,477.16 points, down 114.74 points and 7.2% off its all-time high. The Dow closed at 45,960.11, and the Nasdaq finished at 21,408.08, losing 469.38 and 521.74 points, respectively.
Internationally, stock indices saw declines, with Germany’s DAX losing 1.5%, Hong Kong’s Hang Seng dropping 1.9%, and South Korea’s Kospi falling 3.2%. Japan’s Nikkei 225 saw a relatively modest decrease of 0.3%.
