U.S. Stock Market Loses Over $1 Trillion as War on Iran Rattles Wall Street
Escalating tensions with Iran, soaring oil prices, and surging Treasury yields trigger a broad sell-off as investors brace for deeper economic fallout.
United States, PUREWILAYAH.COM — More than $1 trillion was erased from the value of U.S. equities on Friday as Wall Street’s recent rally came to an abrupt halt amid continued concerns over the U.S.-Israeli war against Iran, a sharp rise in oil prices, and surging Treasury yields.
The sell-off reflected growing investor anxiety over the economic consequences of an expanding conflict with the Islamic Republic, particularly as fears mounted that tensions in the Strait of Hormuz could disrupt one of the world’s most vital energy corridors.
The Dow Jones Industrial Average fell more than 500 points in afternoon trading, while the S&P 500 dropped over 1 percent and the Nasdaq Composite declined about 1.5 percent as investors sold high-growth technology stocks that had driven markets to record highs in recent weeks.
Oil Prices Jump Above $100
Crude prices surged after President Donald Trump warned that Washington’s patience with Iran was running thin, fueling concerns of further escalation in West Asia and renewed disruption to shipping through the Strait of Hormuz.
West Texas Intermediate rose above $105 per barrel, while Brent Crude climbed beyond $108 per barrel.
Analysts said continued restrictions or instability in Hormuz could interrupt flows of oil, natural gas, and other essential commodities, driving prices higher across the global economy.
Treasury Yields Reach Multi-Decade Highs
The market downturn intensified as the yield on the 30-year U.S. Treasury bond climbed above 5.1 percent, approaching its highest level in nearly two decades. The 10-year Treasury yield also rose above 4.5 percent.
Rising borrowing costs added to fears that persistent inflation and geopolitical uncertainty could undermine highly valued equities and place additional pressure on consumers and businesses.
Technology and Crypto Stocks Lead Losses
Technology and semiconductor shares suffered the steepest declines as investors moved to lock in profits following an extended rally fueled by enthusiasm surrounding artificial intelligence.
Intel Corporation fell 5 percent, Advanced Micro Devices lost 3 percent, Micron Technology dropped 4 percent, and NVIDIA Corporation declined 2 percent.
Cryptocurrency-linked stocks also fell sharply as Bitcoin slipped below $80,000. Coinbase Global dropped 8 percent, while Strategy lost 6 percent.
Araghchi: “All of This Was Avoidable”
Responding to the turmoil, Iranian Foreign Minister Seyed Abbas Araghchi said the economic pain facing the United States was the direct consequence of a war of choice against Iran.
“Americans are told that they must absorb rocketing costs of war of choice on Iran.” Araghchi wrote on X.
“Put aside gas price hike and stock market bubble. Real pain begins when U.S. debt and mortgage rates start to jump..”
He added that defaults on auto loans have already reached their highest level in more than 30 years before concluding: “All of this was avoidable.” (PW)
Source: Tasnim