Dow Plummets 981 Points This Week Amid Middle East Turmoil
Wall Street closed sharply lower as the U.S.-Israeli conflict with Iran entered its fourth week. Investors grew more concerned about rising inflation and higher interest rates amid sustained Middle East turmoil.
Major indexes and market breadth
The S&P 500 fell 1.51% to 6,506.48, its lowest close since September. The Nasdaq dropped 2.01% to 21,647.61, putting it almost 10% below its October 29 record high.
The Dow declined 0.96%, sliding 443.96 points to 45,577.47. The Russell 2000 lost 2.26% and sits about 10% below its January 22 peak.
Weekly losses and technical backdrop
For the week, the S&P 500 slipped 1.9%. The Nasdaq and Dow each lost just over 2%, with the Dow plunging about 981 points for the week amid Middle East turmoil. All three major indexes traded below their 200-day moving averages.
Geopolitical pressures and energy
Fighting in the Middle East showed no sign of easing. The U.S. moved an amphibious assault ship and thousands of Marines and sailors to the region. Iran’s new supreme leader publicly praised unity and resistance.
Oil prices stayed elevated. That supported higher inflation expectations and added pressure on markets and bonds.
Bonds, interest rates and market reaction
U.S. Treasuries fell for a third session. British and European government bonds also slid amid the broader selloff. The moves reflected worries about prolonged inflation and tighter monetary policy.
CME’s FedWatch tool showed markets assigning a higher probability to rate hikes than cuts by the end of 2026. Analysts linked the shift to persistent oil-driven inflation pressure.
Sector and stock movers
Nine of 11 S&P 500 sectors declined. Utilities led losses, down 4.11%, with real estate falling 3.15%. The energy sector was nearly flat but marked its 13th straight weekly gain.
Super Micro Computer plunged 33% after charges alleging smuggling of about $2.5 billion in AI technology to China. Rival Dell rose. FedEx raised its outlook and saw its shares climb nearly 1%.
Market internals and trading activity
Declining issues outnumbered advancers in the S&P 500 by about 3.4-to-one. The S&P posted 11 new highs and 36 new lows. The Nasdaq recorded 43 new highs and 274 new lows.
Trading volume was heavy on Friday’s triple witching. Investors traded roughly 27.5 billion shares, above the 20-session average of 20.1 billion.
Market strategists said the persistence of the conflict may prolong volatility. Filmogaz.com will continue to monitor developments and report market updates as they unfold.
