Stock Market Today: Dow Falls 700 Points as Oil Surges Past $100 Amid Middle East Tensions

​U.S. stocks took a steep dive on Thursday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting declines amid rising oil prices and geopolitical uncertainty. Investors reacted to escalating tensions between the U.S. and Iran, which have disrupted energy supplies and raised concerns about inflationary pressures in the months ahead.

The Dow fell more than 700 points, or roughly 1.5%, while the S&P 500 and Nasdaq dropped 1.5% and 1.7%, respectively, marking a third consecutive day of losses for major indices. Oil surged past $100 a barrel as Iran widened its attacks on energy infrastructure across the Middle East, with Iraq closing ports after strikes on tankers, and markets grappled with the potential for prolonged disruption in global supply.

Market Movers:

• Eastman Kodak (KODK) +9% – Shares jumped after reporting Q4 revenue of $290M, up 9% Y/Y, with gross profit climbing 31% to $67M. Strong performance in the Advanced Materials & Chemicals segment, coupled with operational EBITDA rising 144% Y/Y to $22M, drove optimism about future growth.
• Klarna Group (KLAR) +7% – Shares rose on notable insider buying, including 3.47M shares purchased by Chairman Michael Moritz over the past week. Executives’ confidence, coupled with market speculation about strategic initiatives, helped lift investor sentiment.
• Marathon Digital (MARA) +7% – Shares rallied alongside Bitcoin, which climbed about 5% to $74K, boosting sentiment across crypto-linked equities. Mining peers Riot Platforms (+5%), CleanSpark (+7%), HIVE Digital (+8%), and Bitfarms (+5%) also saw gains, reflecting strong correlations with cryptocurrency trends.
• Constellium SE (CSTM) +2% – Shares advanced after the company authorized a $300M share repurchase program effective after the May annual meeting. Investors welcomed the move, viewing it as a signal of confidence in long-term cash flow and shareholder value.
• Ulta Beauty (ULTA) -10% – Shares dropped following Q4 results that beat sales expectations but fell short on profits and FY2026 guidance. Net sales rose 11.8% Y/Y to $3.9B, but the mid-point comparable sales growth forecast of 3% fell below consensus, weighing on investor sentiment.
• Adobe (ADBE) -8% – Despite beating Q1 revenue and subscription forecasts, shares fell after CEO Shantanu Narayen announced plans to step down, remaining as board chair. Market participants interpreted the leadership transition as a potential source of uncertainty amid solid top-line performance.
• SentinelOne (S) -5% – Shares declined despite reporting Q4 non-GAAP EPS of $0.07, above expectations, as Q1 guidance disappointed. FY2027 revenue projections aligned with consensus, but investors focused on operating income and margin pressure concerns.

Oil and Energy Pressures

Crude prices surged above $100 a barrel as Iran intensified attacks on energy infrastructure across the Middle East. Iraq’s closure of key oil terminals following tanker strikes, combined with warnings from Iran that crude could hit $200 per barrel, sent shockwaves through commodity markets. Energy stocks led the market rally in a defensive rotation, with large-cap energy ETFs like XLE notching record intraday highs. Analysts warn that prolonged conflict could drive volatility in both energy futures and equities for months, with investors weighing supply risks against inflationary pressures.

Macro and Fed Watch

Initial jobless claims remained steady at 213,000, suggesting the labor market retains its resilience despite geopolitical shocks. Inflation data, particularly the January Core PCE reading at 3.1% Y/Y, has investors scrutinizing the Fed’s next moves. While rate hikes appear off the table, sustained energy-driven inflation could complicate the central bank’s communication strategy, forcing it to strike a delicate balance between supporting growth and managing consumer prices.

Treasury yields have reacted cautiously to these dynamics, with the 10-year note holding near 3.9%, reflecting investor uncertainty over whether risk-off flows will persist. With oil prices a major driver, some strategists are positioning portfolios defensively, favoring short-duration bonds, dividend-paying equities, and energy-related ETFs while trimming exposure to high-beta tech stocks that are more sensitive to interest rates and broader volatility.

Corporate Developments and Tech

Tech and consumer discretionary names bore the brunt of risk-off sentiment as investors rotated into defensive sectors. Rivian (RIVN) shares fell 4.7% after announcing that its base R2 SUV will start at $45K but won’t be available until late 2027, disappointing buyers eager for immediate delivery. Meanwhile, Adobe (ADBE) and SentinelOne (S) investors focused on leadership transitions and guidance, highlighting how even fundamentally strong companies can suffer in turbulent macro conditions.

Meanwhile, GoFundMe’s AI-powered fundraising coach launch has drawn attention from tech investors, highlighting opportunities for growth in fintech and AI-driven productivity tools. Yet for the broader market, these developments remain minor compared with the gravitational pull of energy, inflation, and geopolitics. Market breadth remains narrow, with leadership concentrated in defensive sectors, suggesting volatility may persist until a clear signal on oil supply and Middle East tensions emerges.

Looking Ahead

Investors will be closely monitoring developments in the Middle East, oil supply disruptions, and geopolitical risks, which are poised to drive market sentiment over the coming weeks. Inflation readings and the Federal Reserve’s commentary will also remain central to pricing decisions, particularly if energy-driven pressures persist. Until clarity emerges, expect defensive rotations, sector-specific rallies in energy and commodities, and ongoing volatility in tech and discretionary stocks, creating opportunities for nimble investors willing to navigate this choppy environment.