Markets Plunge Amid Iran Tensions, Oil Surge

0:00On March 26, U.S. stock markets took a sharp hit Thursday, with the S&P 500 dropping 1.7 percent. That's putting the index on track for a fifth-stray losing week, the longest streak in nearly four years. The Dow Jones industrial average fell 1 percent, while the NASDAQ composite plunged 2.4 percent. Tensions escalated after Iran rejected a U.S. ceasefire proposal and floated its own plan calling for war reparations. Fighting continued, with thousands more U.S. troops heading to the region, and Iran tightening control over the straight of Hormuz. Oil prices surged, with Brent crude up 4.8 percent to $101.89 per barrel, and U.S. crude rising, 4.6 percent to $94.48. Higher treasury yields added pressure, as the 10-year note climbed to 4.41 percent from 3.97 percent before the war. That's pushing up mortgage and loan rates, which could slow the economy. A fresh report showed slightly more Americans filing for unemployment last week, though numbers remain low historically.

1:05Wall Street's rate cut hopes for this year have faded amid inflation fears, from spiking oil. Tech stocks dragged the market down, with meta-platforms tumbling 8.1 percent in alphabet dropping 3.3 percent after a jury. Held Instagram and YouTube, liable in a social media addiction case, Nvidia fell 3.6 percent, while Apple bucked the trend with a 0.6 percent gain. Global markets echoed the slide, from Germany's DAX down 1.5 percent to South Korea's Cospi of 3.2 percent, with oil staying elevated and the straight and focus, investors are bracing for more volatility ahead.