US Stocks Plummet as Oil Prices Surge Amid Iran Conflict
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
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Source: NASDAQ.COM
- Oil Price Surge Impacts Markets: WTI crude oil prices soared over 9% on Thursday due to fears surrounding the Iran conflict, leading the S&P 500 to drop 1.52%, the Dow Jones by 1.56%, and the Nasdaq 100 by 1.73%, indicating heightened market anxiety over rising inflation.
- Bank Stocks Under Pressure: Morgan Stanley and Cliffwater LLC capped withdrawals from their private credit funds amid high investor redemption requests, causing Ares Management to fall over 6% and Goldman Sachs to drop more than 4%, reflecting growing concerns about credit quality in the market.
- Mixed Economic Data: Initial jobless claims in the US fell to 213,000, better than the expected 215,000, indicating labor market strength; however, January building permits fell 5.4% to 1.376 million, suggesting potential slowdowns in future construction activity, which could dampen market confidence.
- International Tensions Affecting Outlook: Comments from Iran's Supreme Leader heightened concerns about ongoing tensions in the Middle East, with expectations that if the situation remains tense, global oil supply could decrease by 8 million barrels per day, further driving up oil prices and potentially leading to a global economic slowdown.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
