The S&P 500 (^GSPC +1.18%) fell 1.67% to 6,375.85, marking its fifth weekly drop. The Nasdaq Composite (^IXIC +2.07%) sunk 2.15% to 20,948.36, putting it in correction territory after falling more than 10% from its October high. The Dow Jones Industrial Average (^DJI +0.59%) lost 1.73% to 45,166.64 as high oil prices and tech jitters drove a wide sell-off.
Market movers
Energy names outperformed as Brent crude jumped above $110 and boosted producers such as Suncor Energy (SU 0.17%). Exxon Mobil (XOM 0.29%) and Chevron Corporation (CVX 1.51%) both posted gains.
Mega-caps, including chipmaker Nvidia (NVDA +1.30%), struggled. Growing risk-off sentiment, artificial intelligence (AI) spending concerns, and lawsuit pressures all weighed on the Nasdaq. Meta Platforms (META +2.27%)and Alphabet (GOOG +4.96%) dropped further following yesterday’s court ruling on social media addiction. Amazon (AMZN +3.23%) and Microsoft (MSFT 1.13%) slipped on AI expenditure questions.
Heightened geopolitical tensions impacted airline and cruise stocks. Delta Air Lines (DAL +0.57%) and United Airlines (UAL 0.68%) slid. Carnival (CCL +0.41%) fell after it cut its 2026 outlook.
What this means for investors
The Iran war and spike in oil prices continue to present significant headwinds for markets. Brent crude climbed 7% today to finish at $113 a barrel. The longer oil prices remain elevated, the more serious the potential long-term damage, particularly in terms of inflation.
The CBOE Volatility Index gained 13% to close at 31.05 today, its highest since last April’s tariff disruptions. Investors looking to navigate these headline-driven markets might look for dividend plays and defensive sectors whilst remaining focused on long-term investment objectives.
