Dow, S&P 500, and Nasdaq 100 Drop as Iran Conflict Intensifies

U.S. stocks suffered their worst session since the Iran conflict began on March 26, as doubts over a potential ceasefire deal rattled investor confidence. The S&P 500 fell 1.7%, the Dow Jones Industrial Average dropped 469 points (1%), and the Nasdaq composite sank 2.4%, pushing it into correction territory at more than 10% below its all-time high set earlier this year . The broad selloff put the S&P 500 on track for a fifth consecutive losing week, the longest such streak in nearly four years.

Oil prices surged as investors grew skeptical of diplomatic efforts to end the conflict: Brent crude rose 5.7% to settle at $108.01 per barrel, while U.S. crude climbed 4.6% to $94.48 per barrel. President Trump stated that the market's reaction to Iran had not been as severe as he anticipated, but his remarks did little to ease investor anxiety. MarketWatch noted that Trump's Iran reprieve failed to deliver the hoped-for market improvement .

The selloff underscores growing unease over the economic toll of the conflict, with the ECB President also warning on inflation risks. Defense stocks and energy names saw relative strength, but the broader market remains vulnerable to further escalation. Investors may watch for ceasefire developments and upcoming economic data for signals on whether the downturn deepens or stabilizes.