Major indices drop over 1% as Middle East tensions and inflation concerns trigger broad risk-off sentiment in markets.
US equities suffered steep losses as escalating Middle East tensions and surging oil prices spurred a risk-off shift. The Dow fell 507 points, or 0.97%, while the NASDAQ led declines with a 2.15% drop, pressured by rising Treasury yields and inflation worries.
The 10-year Treasury yield hit 4.70%, its highest since early 2025, as traders weighed the possibility of a move toward 5%. Oil prices climbed more than 5%, amplifying concerns over persistent inflationary pressures. Technology and growth stocks bore the brunt of the selloff, with Tesla and T-Mobile among the hardest hit.
Closing levels showed the S&P 500 down 1.21% and the NASDAQ 100 retreating 1.87%. The Russell 2000 declined 0.67%, reflecting broad-based weakness across sectors.