Stocks fell sharply on Thursday, and oil prices rose as skepticism reignited optimism on Wall Street about a possible end to the war with Iran.
The S&P 500 fell 1.7 percent in its worst day since January and is back on track for a fifth straight week of losses. That dates back to before the Iran war began, and would be the longest such loss in nearly four years.
The Dow Jones Industrial Average fell 469 points, or 1 percent, while the Nasdaq composite sank 2.4 percent to fall more than 10 percent below its high set earlier this year.
That’s enough decline for professional investors with your name: “correction.”
Stock markets also fell in much of Asia and Europe.
They are the latest paper – flops in the financial markets in a week that began with high hopes after President Donald Trump said meaningful talks were taking place about ending the war.
But Iran denied that direct talks were underway and rejected a US proposal to end the ceasefire launched by Pakistan.
On Thursday, the fighting continued, and thousands of US troops approached the region.
Iran, on the other hand, has tightened its grip on the vital Strait of Hormuz. It could create something like a “toll booth” for tanker drivers to pass through the narrow waterway, which typically sees a fifth of the world’s oil flow from the Persian Gulf to customers around the world.
The price of a barrel of Brent crude oil rose 4.8 percent to settle at $101.89 as prospects for a possible return to normality in the crisis faded. That goes up to about $70 before the fight starts. Benchmark US crude rose 4.6 percent to $94.48 per barrel.
“They better act soon, before it’s too late,” Trump said on social media Thursday morning about the Iran talks, “because once that happens, there’s NO GOING BACK, and it’s not going to be good!”
Just minutes after Wall Street ended trading for the day, Trump softened his tone a bit. He said he was delaying his threat to “wipe out” Iranian power plants until April 6, allowing more time for negotiations.
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“The negotiations are ongoing and, despite the erroneous statements against the Fake News Media, and others, they are going very well.”
After that, oil prices pared some of their gains, and Brent crude fell to $100 per barrel. Treasury yields also included their biggest jump in the bond market.
High Treasury yields and disruptions in the bond market were the main factors Trump cited last year when he backed off his initial threats of global tariffs made on “Independence Day.” These moves have prompted critics to blame Trump every now and then, or “TACO,” if financial markets show enough pain.
The 10-year Treasury yield rose to 4.43 percent on Thursday from 4.33 percent late Wednesday and from 3.97 percent before the fight began. That’s a significant jump for the bond market, and it’s already sent higher rates of mortgages and other types of debt for US households and businesses, slowing the economy.
A report on Thursday morning said more American workers filed for unemployment benefits last week, although the number remains low compared to historical figures.
A sluggish job market can often encourage the Federal Reserve to lower interest rates to stimulate the economy. But hopes abound on Wall Street for a possible cut in interest rates this year, although traders are coming into 2026 predicting fewer. That’s because low interest rates carry the risk of worse inflation, and rising oil prices have heightened those worries.
On Wall Street, technology stocks have been the market’s heaviest.
Meta Platforms fell eight percent, while Alphabet sank 3.4 percent after each held back slightly the day before, when a judge found Instagram and YouTube guilty in a landmark social media addiction case.
The financial penalties were small compared to the huge profits for the companies, but they could present a moment that invites many lawsuits.
Other Big Tech stocks also fell, including a 4.2 percent drop in Nvidia and 2 percent in Amazon. Apple was outside and rose 0.1 percent.
Commercial Metals fell 4.7 percent after the maker of steel rebar and other products reported weaker-than-expected fourth-quarter earnings. Chief executive Peter Matt said bad weather hurt its performance in North America during the quarter, but market conditions looked good.
Overall, the S&P 500 fell 114.74 points to 6,477.16 and is 7.2 percent below its highest set in the past few months. The Dow Jones Industrial Average fell 469.38 to 45,960.11, while the Nasdaq composite sank 521.74 to 21,408.08.
In stock markets abroad, Germany’s DAX lost 1.5 percent, Hong Kong’s Hang Seng sank 1.9 percent and South Korea’s Kospi dropped 3.2 percent. Japan’s Nikkei 225 had the smallest loss in the world, at 0.3 percent.
© 2026 The Canadian Press
