After moving sharply lower early in the session, stocks have regained some ground over the course of the trading day on Monday. The major averages have climbed well off their worst levels of the day but remain in negative territory.
The Dow has rebounded after plunging by nearly 900 points but continues to post a notable loss, down 399.47 points or 0.8 percent at 47,102.08. The S&P 500 is also down 36.60 points or 0.5 percent at 6,703.42 and the Nasdaq is down 48.93 points or 0.2 percent at 22,338.75.
Stocks initially extended the slump seen over the course of the two previous sessions amid an extended surge by the price of crude oil.
After skyrocketing above $100 a barrel for the first time since 2022, crude oil prices have given back some ground but remain substantially higher.
Oil prices are extending last week’s spike amid ongoing concerns about the escalating conflict in the Middle East.
The continued increase comes following reports major oil producers Iraq, Kuwait and the United Arab Emirates are cutting production.
With the Strait of Hormuz effectively closed due to Iranian threats against tankers, the countries are purportedly running out of storage space.
In a post on Truth Social, President Donald Trump called the spike in oil prices a “a very small price to pay” for national security and claimed prices will “drop rapidly when the destruction of the Iran nuclear threat is over.”
“Tipping over the $100 a barrel level has major implications from a psychological and economical perspective,” said Dan Coatsworth, head of markets at AJ Bell.
He added, “It significantly raises the chances of a sharp jump in inflation and interest rates shifting to a completely different path than the market had priced in only two weeks ago.”
The initial sell-off dragged the major averages down to their lowest intraday levels in three months, which may have inspired some traders to go bargain hunting.
Sector News
Airline stocks are extending the sell-off seen over the past several sessions, resulting in a 7.1 percent nosedive by the NYSE Arca Airline Index. The index has plummeted to its lowest intraday level in well over three months.
Substantial weakness is also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index plunging by 3.7 percent and 3.0 percent, respectively.
Networking stocks have also shown a significant move to the downside, dragging the NYSE Arca Networking Index down by 2.8 percent.
Housing, gold and telecom stocks are also seeing considerable weakness, while oil producer stocks are bucking the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan’s Nikkei 225 Index plummeted by 5.2 percent, while Hong Kong’s Hang Seng Index tumbled by 1.4 percent.
The major European markets have also moved to the downside on the day. The French CAC 40 Index is down by 1.3 percent, the German DAX Index is down by 1.1 percent and the U.K.’s FTSE 100 Index is down by 0.6 percent.
In the bond market, treasuries are giving back ground after ending last Friday’s session modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.9 basis points at 4.162 percent.
Business News
U.S. Stocks Regain Ground After Early Slump But Remain Mostly Lower
2026-03-09 15:22:32
