Highlights
Stocks sold off sharply Thursday as oil prices surged and ceasefire hopes faded with President Trump's five-day pause on strikes against Iranian energy infrastructure set to expire Saturday. The Dow fell 1.0 percent, the S&P 500 dropped 1.7 percent, and the Nasdaq plunged 2.4 percent. Bond yields spiked higher on inflation concerns as oil prices jumped more than 4 percent, while the dollar strengthened and gold fell sharply.
In an early morning Truth Social post, President Trump warned Iranian negotiators to"get serious soon" or face a"final blow" from which there would be"no turning back." He later pushed back against the idea of a deal during a cabinet meeting. Iran had rejected the US 15-point ceasefire proposal, dimming expectations of a near-term end to the conflict.
Technology was the hardest-hit sector, particularly memory chips which continued Wednesday's sell off precipitated by Alphabet's unveiling of a more efficient AI model, dragging down Micron, Sandisk, Lam Research, and Applied Materials. Meta fell nearly 8 percent on layoff news and fallout from a jury finding its social media harmful to children. Energy was the standout, with Valero up almost 6 percent as crude prices climbed.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.