Stocks fell sharply Thursday, and oil prices rose as doubt took another time from hope on Wall Street a couple of possible end to the war with Iran.
The S&P 500 slumped 1.7 per cent for its worst day since January and is back heading in the right direction for a fifth straight losing week. That stretches back to before the Iran war began, and it could be the longest such losing streak in nearly 4 years.
The Dow Jones Industrial Average dropped 469 points, or one per cent, and the Nasdaq composite sank 2.4 per cent to fall greater than 10 per cent below its all-time high set early this yr.
That’s a steep enough drop that skilled investors have a reputation for it: a “correction.”
Stock markets likewise tumbled across much of Asia and Europe.
They’re the newest flip – flops for financial markets in per week that began with big hopes after President Donald Trump said productive talks had taken place about ending the war.
But Iran denied direct talks were underway after which dismissed a U.S. proposal for a ceasefire that was delivered via Pakistan.
On Thursday, the fighting continued, and 1000’s more U.S. troops neared the region.
Iran, meanwhile, tightened its grip on the crucial Strait of Hormuz. It might be creating something like a “toll booth” for tankers to get past the narrow waterway, which usually sees a fifth of the world’s oil exit the Persian Gulf through it to customers worldwide.
The worth for a barrel of Brent crude oil climbed 4.8 per cent to settle at $101.89 as hopes dimmed for a possible return to normal for the strait. That’s up from roughly $70 before the war began. Benchmark U.S. crude rose 4.6 per cent to $94.48 per barrel.
“They higher get serious soon, before it is simply too late,” Trump said on his social media network Thursday morning about Iran’s negotiators, “because once that happens, there’s NO TURNING BACK, and it won’t be pretty!”
Just minutes after Wall Street finished its trading for the day, Trump softened his talk a bit. He said he was delaying his threat to “obliterate” Iranian power plants to April 6, allowing more time for talks.
Get breaking National news
Get breaking Canada news delivered to your inbox because it happens so you will not miss a trending story.
“Talks are ongoing and, despite erroneous statements on the contrary by the Fake News Media, and others, they’re going thoroughly.”
After that, oil prices trimmed a few of their gains, and Brent crude fell back toward $100 per barrel. Treasury yields also pared their big jumps within the bond market.
High Treasury yields and disruption within the bond market were big aspects that Trump named a yr ago when he backed off his initial threats for global tariffs made on “Liberation Day.” The moves caused critics to allege Trump all the time chickens out, or “TACO,” if financial markets show enough pain.
The yield on the 10-year Treasury jumped as high as 4.43 per cent Thursday from 4.33 per cent late Wednesday and from just 3.97 per cent before the war began. That’s a big leap for the bond market, and it’s already sent rates higher for mortgages and other forms of loans for U.S. households and businesses, which slows the economy.
A report on Thursday morning said barely more U.S. staff filed for unemployment advantages last week, though the number continues to be low compared with historical figures.
A slowing job market would typically encourage the Federal Reserve to chop rates of interest to juice the economy. But hopes have cratered on Wall Street for a possible cut to rates of interest this yr, though traders got here into 2026 forecasting several. That’s because lower rates of interest carry the chance of worsening inflation, and the spike in oil prices has heightened those worries.
On Wall Street, tech stocks were the heaviest weights available on the market.
Meta Platforms fell eight per cent, and Alphabet sank 3.4 per cent after each had held relatively regular the day before, when a jury found Instagram and YouTube liable in a landmark social-media addiction trial.
The financial penalties were small compared with the businesses’ vast profits, however it could herald a watershed moment that invites more lawsuits.
Other Big Tech stocks also fell, including drops of 4.2 per cent for Nvidia and two per cent for Amazon. Apple was an outlier and inched up 0.1 per cent.
Industrial Metals fell 4.7 per cent after the maker of steel rebar and other products reported a weaker profit for the newest quarter than analysts expected. CEO Peter Matt said bad weather hurt its North American operations through the quarter, but underlying market conditions looked favorable.
All told, the S&P 500 fell 114.74 points to six,477.16 and is 7.2 per cent below its all-time high set a pair months ago. The Dow Jones Industrial Average dropped 469.38 to 45,960.11, and the Nasdaq composite sank 521.74 to 21,408.08.
In stock markets abroad, Germany’s DAX lost 1.5 per cent, Hong Kong’s Hang Seng sank 1.9 per cent and South Korea’s Kospi dropped 3.2 per cent. Japan’s Nikkei 225 had considered one of the world’s milder losses, at 0.3 per cent.
© 2026 The Canadian Press