Dow Drops 356 Points as US-Iran Talks Fail, Oil Tops $100
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- Dow Jones Industrial Average led a broad selloff, falling 356.14 points (0.72%) to 47,572.11 by 09:40 a.m. ET, with the S&P 500 down 0.33% to 6,794.64 and the Nasdaq off 0.36% to 22,821.15, as failed US-Iran talks unsettled markets.
- Goldman Sachs shares tumbled 4.1% after weakness in its fixed income, currencies and commodities division overshadowed an earnings beat, with Spartan Capital's Peter Cardillo noting investors are fixated on inflation and a Fed potentially 'forced to stay on hold for a long, long time.'
- Oil prices surged back above $100 a barrel, lifting energy stocks 1.2% as the only major sector in positive territory, with Chevron (+1.8%), Exxon Mobil (+1.2%), and ConocoPhillips (+2%) leading gains.
- The US military imposed a blockade of all maritime traffic entering or leaving Iranian ports and coastal areas to pressure Tehran, while the CBOE Volatility Index climbed to 20.61 points.
- Invesco's global head of research Benjamin Jones said the firm expects 'renewed pressure on risk assets and upward moves in oil early this week,' arguing that without clarity on trade-flow resumption, markets remain in a 'status quo' economically despite last week's ceasefire.
- Travel stocks dropped on fuel-cost concerns, with Delta Air Lines off 2.9% and JetBlue down 2.4%, while investors rotated into the safe-haven US dollar and trimmed equity exposure globally.
Why it matters: Goldman's 4.1% slide shows Wall Street is no longer leaning on earnings beats to absorb geopolitical shocks, while oil's return above $100 threatens to deepen the worst US consumer price surge in nearly four years and keep the Fed sidelined, squeezing both airlines and broader risk assets.
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