U.S. stocks suffered their worst session since the onset of the Iran conflict on Thursday as the collapse of peace negotiations between Washington and Tehran sent crude oil prices surging and rattled investor confidence across virtually every corner of the market. What began as a cautiously lower open turned into a broad-based rout after President Trump signaled he would not commit to Iran’s proposed terms, dashing hopes that had briefly buoyed futures overnight.
The Dow Jones Industrial Average fell 469.38 points, or 1.01%, to close at 45,960.11. The S&P 500 (SPI:SP500) dropped 114.74 points, or 1.74%, ending the day at 6,477.16. The Nasdaq Composite bore the heaviest losses, shedding 521.75 points, or 2.38%, to finish at 21,408.08 — pushing the tech-heavy index deeper into correction territory, now more than 10% below its recent high. Energy prices were the immediate catalyst: Brent crude jumped 5.7% to settle near $108 per barrel, while West Texas Intermediate climbed 4.6% to $94.48, after reports surfaced that Iran is preparing legislation to impose tolls on ships transiting the Strait of Hormuz.
Notable Movers
Technology and growth names led the downturn. Meta Platforms (NASDAQ:META) tumbled roughly 7%, weighed down not only by the risk-off mood but also by two significant court rulings related to child safety. Micron Technology (MU) slid 5.5% after guiding fiscal 2026 capital spending well above Wall Street expectations; the memory-chip maker was further pressured by Alphabet’s unveiling of its TurboQuant AI compression algorithm, which reportedly reduces the memory requirements of large language models by at least six times. Advanced Micro Devices (AMD) fell 6.4% in sympathy with the broader semiconductor retreat.
On the upside, Brown-Forman (BF.B) surged roughly 14.5% — trading was briefly halted for volatility — after Bloomberg reported that French spirits giant Pernod Ricard is exploring a potential acquisition of the Jack Daniel’s parent company. The deal talk underscored ongoing consolidation pressure in the alcoholic beverage industry, where companies are seeking scale amid a prolonged consumer downturn. No transaction has been confirmed, and discussions remain at an early stage.
Looking Ahead
Investors will be closely watching developments on the Iran front heading into the final trading sessions of March. Any movement toward renewed diplomacy — or further escalation around the Strait of Hormuz — could drive outsized swings in energy prices and, by extension, the broader equity market. Meanwhile, first-quarter earnings season is approaching quickly, with bank results due in the coming weeks. Analysts are watching for signs that the anticipated M&A super-cycle, fueled by AI-driven consolidation and a backlog of private equity exits, is translating into actual revenue. The European Central Bank also bears watching after President Lagarde warned that sustained conflict-driven energy inflation could force rate hikes on the continent, adding another layer of uncertainty for global markets.