US stocks today: Dow Jones slumps 470 points, Nadsaq, S&P over 1% as Iran war uncertainty spooks investors
Why it matters: Geopolitical instability is rattling markets, pushing oil prices up, and threatening global economic growth.
- President Trump warned Iran to make a deal or face continued pressure, including the option of taking control of its oil, contributing to market jitters.
- A senior Iranian official rejected the US proposal as "one-sided and unfair," indicating that while diplomacy isn't over, progress is stalled.
- Oil prices surged, with U.S. crude futures up 4.6% and Brent futures advancing 5.7%, as the conflict disrupted oil shipments through the Strait of Hormuz.
- Stock indexes erased Wednesday's gains, with the Nasdaq Composite confirming a correction (down over 10% from its October 29 high), and the S&P 500 potentially following suit, according to Peter Tuz of Chase Investment Counsel.
- Doug Beath of Wells Fargo Investment Institute highlighted the "fog of war" and conflicting signals as key drivers of investor uncertainty and equity selling.
- Technology and communications services were among the biggest laggards, with Meta and Alphabet shares dropping after liability verdicts in lawsuits accusing social media firms of harming children.
- The OECD warned that the Middle East conflict has derailed global economic growth and could sharply increase inflation due to the near-closure of the Strait of Hormuz, complicating central bank decisions on interest rates.
US stock markets plummeted, with the Dow Jones, Nasdaq, and S&P 500 all falling over 1%, as escalating tensions between the US and Iran fueled investor uncertainty and sent oil prices soaring. President Trump's hardline stance on a deal and threats regarding Iran's oil, coupled with an Iranian official calling US proposals "one-sided," extinguished hopes of de-escalation and triggered a broad market sell-off.
