Dow Jones, S&P 500, Nasdaq tumble as Iran war drags on
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- Dow Jones fell 444.60 points (-0.97%) to 45,576.83, marking its worst four‑week loss.
- S&P 500 dropped 98.17 points (-1.49%) to 6,508.32, a 5.41% decline since the Iran war began.
- Nasdaq slid 443.08 points (-2.01%) to 21,647.61, a 4.5% fall since the conflict started.
- Russell 2000 closed 10.3% below its Jan 22 record high, confirming a prolonged correction.
- U.S. Treasuries fell for a third session, echoing a broader bond sell‑off as oil prices stayed high.
- Padhraic Garvey warned that higher inflation expectations tied to oil and the war are pushing rates up, making a Fed hike more likely than a cut by end‑2026.
- CME FedWatch shows markets now see a higher probability of a rate hike than a cut by the end of 2026.
Why it matters: Investors see a sharp erosion of equity value as the Dow, S&P 500 and Nasdaq each slipped nearly 1%‑2%, while the Fed’s odds of a rate hike climb, signaling higher borrowing costs and sustained inflation pressure from elevated oil prices for both corporate borrowers and consumers.
