Dow falls 458 points as oil prices hit $100 a barrel

U.S. stocks declined Thursday arsenic a crisp spike successful crude prices, triggered by Houthi attacks connected Saudi tankers successful the Red Sea, compounded selling unit that was already gathering from disappointing results astatine 2 of the world's largest companies.

The Dow Jones Industrial Average shed 458 points, oregon 0.9%, portion the S&P 500 slid 1.2% and the Nasdaq Composite retreated 2.2%.

Brent crude futures gained much than 7% to commercialized supra $100 per barrel, portion U.S. West Texas Intermediate crude futures precocious astir 6.5% to supra $92 per barrel. Both contracts were trading astatine prices not seen since earlier Washington and Tehran struck a woody to halt their warring past month. The Yemen-based, Iranian-backed Houthi question said it carried retired strikes connected 2 Saudi lipid tankers successful the Red Sea, stoking alarm that hostilities successful the portion could beryllium widening. President Donald Trump separately threatened connected Truth Social to weaponry Iranian bridges and powerfulness plants if Iran attacks ships successful the Strait of Hormuz. Later Thursday, according to Axios, Trump said helium is considering "a monolithic attack" connected Iran, telling the outlet it would beryllium "bigger than ever before."

Rising lipid prices pushed Treasury yields higher. The 10-year output topped 4.7%, its highest level since January 2025, portion the 2-year output climbed supra 4.35%. According to the CME FedWatch tool, markets are present pricing successful an 82% accidental of a Federal Reserve complaint summation astatine the September meeting, astir treble the 52% likelihood recorded a week earlier.

Ross Mayfield, concern strategist astatine Baird, told CNBC that for the adjacent 2 to 3 months the marketplace volition beryllium focused connected Iran. "It's beauteous hard to disregard [the conflict], not conscionable due to the fact that of the lipid prices but besides due to the fact that of the unit crossed the output curve," helium said.

Alphabet shares dropped 6% aft the Google genitor bumped its 2026 superior spending outlook up to $205 billion, attributing the summation to AI infrastructure needs — a disclosure that amplified already-mounting unease connected Wall Street astir however overmuch the biggest tech platforms are pouring into artificial intelligence.

Tesla shares plunged astir 13% to 14% aft the automaker came successful good beneath Wall Street's second-quarter expectations, with costs outpacing income maturation and escaped currency travel swinging into antagonistic territory, according to The Wall Street Journal.

The Cboe Volatility Index, Wall Street's intimately watched fearfulness gauge, jumped much than 14% by the adjacent of trading.