Markets plunge, oil hits $100 as Trump fails to reassure Wall St.
NBC News • • business
Key Points:
- Since the U.S. attacked Iran on February 28, the S&P 500 has declined about 7%, marking its worst five-week stretch since 2022 amid fading confidence in a swift resolution to the conflict.
- Major indexes like the Dow and Nasdaq have entered correction territory, with the Dow down over 10% from recent highs and the Nasdaq off 13%, while oil prices surged past $100 a barrel, reflecting market concerns over supply disruptions.
- Despite President Trump's announcements to pause strikes on Iranian energy sites, markets have shown limited positive reaction, signaling investor demand for concrete resolution rather than administrative commentary.
- Experts warn that the war's impact on oil transport costs and inflation will likely keep prices elevated long-term, reducing the likelihood of Federal Reserve interest rate cuts and dampening prospects for a rapid market recovery.
- Analysts suggest Trump's previous influence on markets is waning as the complexity of the conflict and its economic fallout make it difficult to quickly reassure investors or reverse downward trends.
