The Dow Jones Industrial Average dropped more than 300 points Monday after the United States struck targets inside Iran for the first time in a month. The S&P 500 and Nasdaq composite also fell, while oil prices jumped and energy shares rallied.
The Dow industrials fell more than 300 points, or 0.6% in early action Monday. Alphabet and Amazon dragged the stock market lower, each losing more than 2%, while Chevron rallied almost 2%.
Broader indexes fell too: the S&P 500 dropped 0.4%, with nearly all its sectors lower and only energy in the green, while communication services and utilities took the most stress. The Nasdaq composite came off its lows but stayed down 0.4%.
Oil jumps as Iran conflict widens
West Texas Intermediate crude futures jumped more than 2% to about $85.40 a barrel. Iran launched retaliatory strikes against U.S. bases in Jordan after the U.S. struck rocket launchers in the Strait of Hormuz over the weekend. According to Investor's Business Daily: "We're going to hit them hard," Trump told Fox News on Monday, vowing there will be a response to Tehran's strikes.
The 10-year Treasury yield rose 3 basis points to 4.76%. Bitcoin came off its lows but still fell slightly to about $78,500 per token.
Utilities plunge on wildfire liability bill
PG&E and Edison International both fell more than 20% in massive volume. California lawmakers blocked a bill that would have capped the money people could seek from utility companies whose equipment caused wildfires. PG&E is on track for its largest percentage decrease since March 18, 2020, when it fell 21.15%, according to Dow Jones Market Data.
Energy ETFs lead, defense lags
Oil-focused funds outperformed as the SPDR S&P Oil & Gas Equipment & Services ETF rose nearly 3% and the SPDR S&P Oil & Gas Exploration & Production ETF popped up more than 2%, extending a gain of around 47% so far in 2026. But the SPDR S&P Aerospace & Defense ETF lagged, falling nearly 2%.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
