Dow Jones Dives 1,000 Points at Open — Oil at $107 and Iran War Drag Markets Into 2026's Worst Session
Wall Street is in full retreat Monday morning. The Dow Jones Industrial Average, S&P 500, and Nasdaq are all opening sharply lower as crude oil futures surge past $107 per barrel and the Strait of Hormuz crisis enters its second week with no diplomatic resolution in sight.
Dow Jones Futures Plunge Over 1,000 Points Pre-Market
Futures tied to the Dow Jones Industrial Average dropped around 2.1%, or over 1,000 points. Contracts linked to the S&P 500 fell 2%, while Nasdaq 100 futures declined roughly 2.3%.
Energy markets are the major driver. Crude prices spiked Sunday night as the conflict in Iran spurred countries to cut output while the Strait of Hormuz shipping corridor remained shuttered. Kuwait confirmed production cuts but did not specify the scale, while output in Iraq plunged approximately 70% as available storage nears capacity. WTI crude surged roughly 18% to more than $107 a barrel.
Where Markets Closed Friday — Already Ugly Heading Into Monday
The Dow Jones Industrial Average led Friday's sell-off with a loss of 1.6%, while the S&P 500 and Nasdaq Composite both lost roughly 1.4%. The Dow has now slipped into negative territory for 2026.
The moves extend last week's downward trend, which saw the Dow lose roughly 3% — its steepest weekly drop since tariff concerns rattled markets in April 2025. The S&P 500 slid about 2%, while the Nasdaq Composite finished down over 1%.
Stagflation Alarm — Jobs Miss and Oil Spike Hit at the Same Time
The February jobs report showed nonfarm payrolls fell by 92,000, sharply missing expectations of 55,000 jobs added, and the unemployment rate rose to 4.4%. A weaker jobs market combined with surging oil prices has quashed any chance of a Fed rate cut this month and revived fears of stagflation — the dreaded combination of slowing growth and rising inflation.
Full Market Snapshot — Monday March 9, 2026
| Instrument | Change | Level |
|---|---|---|
| Dow Futures (YM=F) | −2.1% / −1,000+ pts | ▼ |
| S&P 500 Futures (ES=F) | −2.0% | ▼ |
| Nasdaq 100 Futures (NQ=F) | −2.3% | ▼ |
| WTI Crude Oil (CL=F) | +18% | ~$107/bbl |
| Brent Crude (BZ=F) | +18%+ | ~$108/bbl |
| 10-Year Treasury Yield | 4.11% | — |
| Bitcoin | −4%+ | ~$68,000 |
What to Watch This Week
Investors will be watching closely for Wednesday's Consumer Price Index and Friday's Personal Consumption Expenditures index readings, though both won't yet capture the full effect of oil's dramatic surge. On the corporate front, Hewlett Packard Enterprise reports after Monday's close, with Oracle, Adobe, and Dick's Sporting Goods scheduled later in the week.
Energy Stocks Are the Only 2026 Winners
The big exception is energy, which is up more than 25% in 2026 — more than double materials, which is in second place at up 10%. Defense names including Lockheed Martin and Northrop Grumman are also sharply higher year-to-date. Every other sector is under pressure as markets reprice the risk of a prolonged Middle East war with no clear end date in sight.
