The S&P 500 (^GSPC 1.67%) fell 1.67% to 6,375.85, marking its fifth weekly drop. The Nasdaq Composite (^IXIC 2.15%) sunk 2.15% to 20,948.36, putting it in correction territory after falling more than 10% from its October high. The Dow Jones Industrial Average (^DJI 1.73%) lost 1.73% to 45,166.64 as high oil prices and tech jitters drove a wide sell-off.
Market movers
Energy names outperformed as Brent crude jumped above $110 and boosted producers such as Suncor Energy (SU +2.58%). Exxon Mobil (XOM +3.36%) and Chevron Corporation (CVX +1.62%) both posted gains.
Mega-caps, including chipmaker Nvidia (NVDA 2.13%), struggled. Growing risk-off sentiment, artificial intelligence (AI) spending concerns, and lawsuit pressures all weighed on the Nasdaq. Meta Platforms (META 3.98%)and Alphabet (GOOG 2.49%) dropped further following yesterday’s court ruling on social media addiction. Amazon (AMZN 3.89%) and Microsoft (MSFT 2.44%) slipped on AI expenditure questions.
Heightened geopolitical tensions impacted airline and cruise stocks. Delta Air Lines (DAL 3.07%) and United Airlines (UAL 4.58%) slid. Carnival (CCL 4.45%) fell after it cut its 2026 outlook.
What this means for investors
The Iran war and spike in oil prices continue to present significant headwinds for markets. Brent crude climbed 7% today to finish at $113 a barrel. The longer oil prices remain elevated, the more serious the potential long-term damage, particularly in terms of inflation.
The CBOE Volatility Index gained 13% to close at 31.05 today, its highest since last April’s tariff disruptions. Investors looking to navigate these headline-driven markets might look for dividend plays and defensive sectors whilst remaining focused on long-term investment objectives.
Emma Newbery has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Chevron, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Carnival Corp. and Delta Air Lines. The Motley Fool has a disclosure policy.
