NEW YORK — Wall Street suffered its biggest single-day decline since the war with Iran began, as renewed uncertainty over the conflict and rising oil prices weighed on investor sentiment.
The S&P 500 fell 1.7 percent, the Dow Jones Industrial Average dropped 469 points, or 1 percent, and the Nasdaq composite sank 2.4 percent on Thursday. The losses marked the sharpest downturn for major indexes since late February, when U.S. and Israeli strikes on Iran triggered the initial market reaction.
The downturn followed mixed signals on diplomatic efforts to resolve the standoff over the Strait of Hormuz. Earlier in the week, hopes for progress lifted stocks after President Donald Trump extended a deadline for Iran to reopen the waterway. On Thursday, those gains reversed as reports indicated limited movement in negotiations and continued restrictions on shipping.
The Strait of Hormuz, which carries roughly one-fifth of global oil trade, has seen commercial traffic drop sharply since Iran began enforcing closures in early March. Major shipping companies have suspended operations in the area, with only sporadic approved transits reported. Brent crude oil rose 4.8 percent to settle at $101.89 a barrel, while U.S. benchmark crude climbed 4.6 percent to $94.48.
Energy costs have surged since the conflict escalated in late February, contributing to broader inflation concerns. The rise in oil prices has pushed Treasury yields higher, with the 10-year note reaching 4.42 percent. Higher borrowing costs affect mortgages, business loans and consumer spending.
Technology stocks led the declines on Thursday. Meta Platforms fell 8 percent, Alphabet dropped 3.4 percent, Nvidia declined 4.2 percent and Amazon lost 2 percent. The Nasdaq, which had already entered correction territory earlier this month, fell more than 10 percent below its record high set earlier in the year.
The S&P 500 closed at 6,477.16, down 114.74 points, and now stands about 7.2 percent below its recent peak. The Dow closed at 45,960.11. Markets in Europe and Asia also posted losses, with Germany's DAX down 1.5 percent and South Korea's Kospi dropping 3.2 percent.
As of Friday morning, trading remained volatile amid ongoing developments in the Middle East. Officials continued to monitor the situation at the Strait of Hormuz, where maritime traffic stayed limited and energy markets showed elevated prices.
