Stock market today: Dow, S&P 500, Nasdaq slide amid inflation worries as Iran war sends oil surging
The Dow fell 0.6%, the S&P 500 slipped 0.7%, and the Nasdaq dropped 0.8% on Thursday as oil prices surged to $85 a barrel after Iran's escalation in the Persian Gulf.
Oil climbed after Iran threatened shipping lanes, heightening geopolitical risk. Investors fear higher energy costs could push inflation higher, prompting the Fed to maintain a hawkish stance.
The spike in oil lifts commodity stocks but pressures consumer staples and tech, dampening growth expectations. The market’s reaction shows sensitivity to geopolitical shocks and the Fed’s stance on inflation. Investors are reallocating to defensive names amid uncertainty.
Energy majors like Exxon Mobil and Chevron benefit, while tech leaders such as Apple see declines. Traders should watch Fed minutes and Middle East developments for further guidance.
- Oil surge fuels commodity rally
- Inflation fears push investors to defensive stocks
- Geopolitical risk keeps markets volatile