Oil prices surged to their highest level since mid-2024, causing the Dow Jones, S&P 500, and Nasdaq indices to fall. The US dollar strengthened, and Treasury yields rose.
Oil prices surged on Thursday, sparking concerns in the stock market amid the escalating war in the Middle East, UNN reports with reference to CNN.
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The Dow Jones Industrial Average fell 601 points, or 1.24%, resuming its decline after stocks closed higher on Wednesday. The S&P 500 index fell 0.5%, and the high-tech Nasdaq index fell 0.2%.
Oil prices jumped to their highest level since mid-2024. WTI crude oil prices rose 5.5% to $78.80 per barrel. Brent crude oil, the international benchmark, rose 3.96% to $84.62 per barrel.
The US dollar strengthened against other major currencies, driven by investors seeking safe-haven assets. The dollar index rose 1.7% this week.
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Treasury yields rose as investors sold bonds and assessed the potential inflationary impact of rising oil prices. The yield on 10-year Treasury notes reached 4.13%, the highest level in three weeks.
Wall Street's fear index, the VIX, jumped 10%. According to CNN's Fear & Greed Index, fear was the driving force in the markets.
"We are not yet seeing any signs of de-escalation, and oil prices continue to rise," said Jim Reid, head of global macroeconomic research at Deutsche Bank, in his report.
