U.S. Stocks Rebound After Sharp Drop Amid Iran‑Israel Conflict
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- Dow Jones Industrial Average fell roughly 2.6% early Tuesday after a 1,200‑point drop, then recovered to end the day down 0.40% on Wednesday.
- S&P 500 opened slightly lower on Wednesday, down 0.27% after the previous day's volatility.
- Crude oil prices rose 1.79% on Tuesday, reflecting concerns about supply disruptions through the Strait of Hormuz.
- VIX jumped 2.57% on Tuesday as investors bought protection, then eased after the sharp run‑up.
- Jordan Rizzuto, chief investment officer at GammaRoad Capital Partners, warned that the conflict could cause lasting energy‑supply disruption and inflationary pressure.
- Peter Ricchiuti, senior professor at Tulane University, said persistent energy prices could push interest rates higher, affecting earnings and stock prices.
- Eddie Ghabour, chief executive of Key Advisors Wealth Management, used the sell‑off to buy industrials, home builders, small caps, and emerging‑market stocks, expecting gains in three weeks.
Why it matters: Investors who bought industrials and emerging‑market equities stand to benefit if the market stabilizes, while those exposed to oil‑price spikes or inflation‑sensitive sectors risk losses as higher energy costs could pressure interest rates and corporate earnings.
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