Overview
- Crude spiked toward $120 a barrel before sliding after the president said the war could be over soon, helping the Dow, S&P 500 and Nasdaq close higher on the day.
- At the U.S. open roughly $900 billion in market value was erased as airlines, cruises and banks led declines, while energy stocks held up better on the oil surge.
- Earlier global selling was broad, with Europe and Asia lower and India’s Sensex and Nifty ending down nearly 2% as the rupee closed at a record low against the dollar.
- The price shock revived stagflation worries and pushed back expectations for near‑term rate cuts as officials discussed measures to temper energy costs and bond yields fluctuated.
- JPMorgan’s trading desk turned tactically bearish and said the S&P 500 could fall about 10% if the Iran war persists, echoing broader warnings that sustained high oil would hit earnings.