After turning in a strong performance in the previous session, stocks moved back to the downside during trading on Thursday. The major averages all moved lower, with the Dow slumping to its lowest closing level in well over two months.
The major averages saw a notable recovery attempt in the final hour of trading but still closed in negative territory. The Dow tumbled 784.67 points or 1.6 percent to 47,954.74, the S&P 500 slid 38.79 points or 0.6 percent to 6,830.71 and the Nasdaq fell 58.50 points or 0.3 percent to 22,748.99.
Concerns about the impact of sharply higher energy prices weighed on Wall Street, as the price of crude oil resumed the surge seen early in the week.
After ending the previous session modestly higher, the price of crude oil has skyrocketed to over $80 a barrel.
The spike in crude oil prices comes amid ongoing supply disruption worries due to the expanding conflict in the Middle East.
Iran has claimed it struck a U.S. oil tanker in the northern Persian Gulf, raising fears of a wider conflict after the Islamic republic threatened to halt shipping through the vital Strait of Hormuz.
Defense Secretary Pete Hegseth has also signaled a possible longer time frame for the conflict than has previously been floated by the Trump administration, saying the war could last up to eight weeks but might be over sooner.
“Oil is so important to the world’s economy and to see the price go up so quickly in just a week could leave investors feeling dazed and confused,” said Dan Coatsworth, head of markets at AJ Bell.
He added, “The Middle East situation is unfolding at a rapid pace, and investors are finding it hard to make a firm call on whether there will be a sustained energy crisis or just a short, sharp shock.”
Meanwhile, a day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report showing first-time claims for U.S. unemployment benefits came in flat in the week ended February 28th.
Sector News
Airline stocks moved sharply lower due to concerns about the impact of the Middle East conflict, dragging the NYSE Arca Airline Index down by 5.9 percent to a three-month closing low.
Substantial weakness was also visible among gold stocks amid a decrease by the price of the precious metal, with the NYSE Arca Gold Bugs Index plunging by 4.2 percent.
Steel, telecom, housing and biotechnology stocks also saw significant weakness, while software and oil stocks bucked the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index shot up by 1.9 percent, while South Korea’s Kopsi soared by 9.6 percent.
Meanwhile, the major European markets showed significant moves to the downside on the day. While the German DAX Index tumbled by 1.6 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both slumped 1.5 percent.
In the bond market, treasuries moved notably lower, extending the downward trend seen over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, surged 6.6 basis points to 4.146 percent.
Looking Ahead
The monthly jobs report is likely to be in the spotlight on Friday, although a report on retail sales may also impact trading along with the latest developments in the Middle East.
Business News
U.S. Stocks Give Back Ground As Crude Oil Prices Resume Surge
2026-03-05 21:16:03
