Stocks Just Had Their Worst Day Since Iran War Began

On Thursday, US stocks had their worst day since the war with Iran started, as doubt took over again from hope on Wall Street about a possible end to the conflict.

• The S&P 500 fell 114.74 points, or 1.7%, to 6,477.16. The index is headed for a fifth straight losing week, which would be the longest such losing streak in almost four years.
• The Dow Jones Industrial Average dropped 469.38, or 1%, to 45,960.11.
• The Nasdaq composite sank 521.74 points, or 2.4%, to 21,408.08.

They're the latest flip-flops for financial markets in a week that began with President Trump's announcement of productive talks about ending the war. That led to Iran's public dismissal of a US ceasefire proposal, while Iran issued its own plan, which includes reparations for the war, the AP reports. Oil prices rose more than 4%, and Treasury yields climbed in the bond market.

On Wall Street, tech stocks were the heaviest weights on the market. Meta Platforms fell 7.9% and Alphabet sank 3.1% after each had held relatively steady the day before, when a jury found Instagram and YouTube liable in a landmark social-media addiction trial. The financial penalties were small compared with the companies' vast profits, but it could herald a watershed moment that invites more lawsuits. Other Big Tech stocks also fell, including drops of 4.2% for Nvidia and 2% for Amazon. Apple was an outlier and inched up 0.1%. Commercial Metals fell 4.7% after the maker of steel rebar and other products reported a weaker profit for the latest quarter than analysts expected.

Stock markets likewise fell sharply across much of Asia and Europe. On Thursday, the fighting continued, and thousands more US troops neared the region. Iran, meanwhile, tightened its grip on the crucial Strait of Hormuz. The narrow waterway typically sees a fifth of the world's oil exit the Persian Gulf through it to reach customers worldwide, and blockages there have sent oil prices near $120 per barrel at times. A barrel of Brent crude oil climbed 4.8% to settle at $101.89 as hopes dimmed for a potential return to normal for the strait. That's up from roughly $70 before the war began. Benchmark US crude rose 4.6% to $94.48 per barrel.

The rise in oil prices worsened worries about high inflation and sent Treasury yields higher in the bond market. The yield on the 10-year Treasury climbed to 4.41% from 4.33% late Wednesday and from just 3.97% before the war started. A report on Thursday morning said slightly more US workers filed for unemployment benefits last week, though the number is still low compared with historical figures. A slowing job market would typically encourage the Federal Reserve to cut interest rates to juice the economy. But hopes have cratered on Wall Street for a possible cut to interest rates this year, even though traders came into 2026 forecasting several. That's because lower interest rates carry the risk of worsening inflation, and the spike in oil prices has heightened those worries.