Traders at the New York Stock Exchange faced a tumultuous session as Dow futures plummeted late Wednesday amidst rising oil prices. Speculation and concern over the ongoing U.S.-Iran conflict weighed heavily on market sentiment, with futures connected to the Dow Jones Industrial Average dropping 461 points, nearly 1%. The S&P 500 and Nasdaq 100 futures mirrored this downtrend, each falling approximately 0.9%.
In a significant move to stabilize the oil market, Energy Secretary Chris Wright announced that the U.S. would release 172 million barrels of oil from the Strategic Petroleum Reserve over the next 120 days. This decision follows President Donald Trump’s remarks during an interview with WKRC in Cincinnati, where he mentioned tapping into the reserve to mitigate soaring oil prices. Despite the announcement, oil prices continued to rise in extended trading, with West Texas Intermediate (WTI) crude futures climbing over 7% to around $93 a barrel.
During the regular trading session, while the S&P 500 and Dow experienced declines, the tech-heavy Nasdaq Composite managed to squeeze out a slight gain. Positive contributions came from the energy, technology, and communication services sectors, with notable performances from AI infrastructure leader Oracle, as well as refinery companies Valero Energy and Marathon Petroleum.
Investor anxiety surrounding the U.S.-Iran situation loomed over the market as rising oil prices reignited fears of inflation. Both WTI and Brent crude futures concluded the day more than 4% higher. This price surge occurred even after the International Energy Agency announced it would release 400 million barrels of oil to alleviate the supply disruptions caused by the ongoing conflict. Tensions escalated when U.S. forces reportedly sank 16 mine-laying Iranian ships near the strategically crucial Strait of Hormuz, where oil tanker traffic has stalled amid fears of Iranian attacks. In light of these developments, insurance company Chubb has been named as the lead underwriter for a U.S. government initiative to provide insurance for vessels navigating the strait.
This string of events follows Trump’s earlier comments indicating that the war may conclude “very soon,” which initially brought some relief to nerve-wracked oil prices after they had surged past $100 a barrel.
Looking ahead, investors are also awaiting key economic data, including weekly jobless claims and housing starts, set to be released on Thursday morning. Additionally, the personal consumption expenditures price index is expected on Friday. For the week, the S&P 500 is on track for a modest 0.5% gain, while the Nasdaq has increased nearly 1.5%. In contrast, the Dow has struggled, registering a decline of almost 0.2% thus far.
