How are the major indexes performing today?
Markets opened deep in the red and have remained under pressure throughout the session:
- Dow Jones Industrial Average dropped over 500 points, down about 1.3%.
- S&P 500 fell nearly 1%.
- Nasdaq-100 tumbled around 1.1%, with tech stocks like Nvidia and Tesla leading the losses.
The sell-off began in pre-market trading and accelerated as more headlines emerged about escalating military activity between Israel and Iran.
What triggered today’s sell-off?
At the center of today’s market turmoil is a surprise Israeli military strike on Iranian nuclear and military infrastructure, reportedly involving advanced airpower. Iran responded by launching nearly 100 drones in retaliation, heightening fears of a prolonged regional war.
This has driven a widespread risk-off sentiment among investors, who are now fleeing stocks in favor of traditional safe havens.
How did oil prices react to the conflict?
Oil is surging in response to fears of supply disruptions in the Middle East:
- WTI crude jumped over 6%, trading above $73 per barrel.
- Brent crude spiked nearly 9%, nearing $77 per barrel.
The market is increasingly concerned about potential disruptions to shipments through the Strait of Hormuz, a critical chokepoint that handles roughly 20% of the world’s seaborne oil.
Which sectors are gaining — and which are falling?
The market reaction has been sharply divided by sector:
Winners:
- Energy stocks like ExxonMobil, Chevron, and BP are rallying alongside crude prices.
- Defense contractors such as Lockheed Martin and Northrop Grumman are gaining ground amid the rising threat of war.
Losers:
- Travel and leisure stocks are taking a beating — airlines like Delta and United, as well as cruise lines like Carnival, are down 4–5%.
- Tech stocks, particularly high-flyers like Nvidia and Tesla, are trading lower as investors pull back from riskier assets.
What are investors watching now?
With the Middle East on edge, traders are bracing for increased volatility. Here’s what’s on the radar:
- Gold is climbing, up around 1.5%, as a safe haven play.
- Treasury yields are fluctuating, with the 10-year note around 4.36–4.41%.
- The VIX (Wall Street’s “fear gauge”) is spiking, up over 13% to about 20.4.
- Some analysts warn that if the conflict intensifies or oil hits $100+, it could lead to a stagflationary shock — rising inflation with slower growth.
What’s the outlook heading into next week?
Markets could remain volatile heading into next week, especially if more military escalations unfold. Rising oil prices may complicate the Federal Reserve’s interest rate outlook, as inflationary pressure builds.
Investors will likely continue shifting toward safe-haven assets, while closely watching updates out of the Middle East and potential diplomatic efforts to deescalate the crisis.
