Wall Street suffered its worst drop since the Iran war began, with the S&P 500 falling 1.7%-its steepest single-day loss since January-and heading for a fifth straight weekly decline.
The Dow Jones shed 469 points, while the Nasdaq plunged 2.4%, officially entering correction territory-more than 10% below its all-time high. Global markets followed suit, with steep losses in Europe and Asia.
Hope for a diplomatic breakthrough collapsed after Iran denied holding direct talks with the U.S. and rejected a ceasefire proposal relayed through Pakistan. Fighting intensified, and thousands of additional U.S. troops moved toward the region.
Iran tightened control over the Strait of Hormuz-the conduit for 20% of global oil exports-sparking fears of supply disruption. Brent crude surged 4.8% to $101.89 per barrel, up from $70 before the conflict.
President Donald Trump escalated rhetoric on social media, warning there would be “NO TURNING BACK” if Iran didn’t negotiate-but later delayed his threat to “obliterate” Iranian power plants until April 6, citing ongoing talks.
The 10-year Treasury yield spiked to 4.43%, pressuring mortgage and loan rates higher and dimming hopes for Federal Reserve rate cuts in 2026. Inflation fears mounted as oil prices soared.
Big Tech led the sell-off: Meta Platforms dropped 8% and Alphabet fell 3.4% after a jury found Instagram and YouTube liable in a landmark social media addiction trial. Nvidia slid 4.2%, Amazon lost 2%, while Apple edged up 0.1%.
