Stocks fell hard in New York on July 8. The Dow lost nearly 580 points with oil surging, stalling Wall Street’s rally. Trading ended at 16:03 (EDT).
- Dow falls 579.50 points as the S&P 500 and Nasdaq end down too.
- Oil rally stirs up inflation worries; Treasury yields go higher as investors want more for holding U.S. government debt.
- Chip stocks steady the market, with Broadcom and Nvidia leading gains.
Wall Street closed in the red on Wednesday. Fresh U.S.-Iran worries pushed oil prices up, hitting cyclical stocks. The Dow Jones Industrial Average shed 579.50 points, or 1.09%, to 52,345.65. The S&P 500 was down 0.40% at 7,473.71. The Nasdaq Composite slipped 0.16% to 25,778.55 and the Russell 2000 dropped 1.02%.
The drop came as investors were already trying to decide if the equity rally could keep going with rising energy prices, stronger bond yields and a Federal Reserve that isn’t showing signs of easing up. Brent crude, the main oil benchmark, jumped 5.2% to $78.02 a barrel and briefly crossed $80 after President Donald Trump questioned the Iran ceasefire. Meanwhile, the 10-year Treasury yield hit 4.56%, according to AP.
The Fed helped push markets lower. Minutes from the June 16-17 meeting showed all members agreed to keep the main federal funds rate at 3.50%-3.75%. Still, a few officials said there was a case to hike. They also noted inflation picked up and stayed above the 2% target.
“Duration is the key here. How long does this go on?” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said to Reuters. Industrials and materials led losses as nine of the 11 S&P 500 sectors fell. Microsoft, Amazon and Alphabet all dropped more than 1%. Broadcom gained 5.2% and Nvidia added roughly 2.8%, which helped keep the Nasdaq’s drop in check. Reuters
Broadcom rose after Apple said it signed a multiyear supply deal with the company that’s set to top $30 billion and deliver more than 15 billion U.S.-made chips. Apple CEO Tim Cook called the components made in Fort Collins “essential” for performance and connectivity. Broadcom CEO Hock Tan said the company will boost its plant in the area. Apple
That was enough to keep the artificial intelligence theme moving for another day. Still, the broader market couldn’t get a boost. The session saw investors snapping up certain chip stocks, while they kept selling names tied to higher rates, energy prices and economic slowdown.
The International Monetary Fund added to the market’s cautious mood, trimming its 2026 global growth forecast to 3.0% and lifting its inflation estimate to 4.7%. Petya Koeva Brooks, deputy director of research at the IMF, said the world economy handled the war shock “better than feared.” But Deniz Igan from the IMF said if conflict breaks out again, the economy would face it from a weaker spot. Reuters
The risk is oil prices don’t come down. If talks restart soon, fuel prices may steady and stock buyers could step back in. But if fighting drags on, or if energy assets get hit, inflation could pick up, the Fed might hold firm, and growth stocks—the ones leading the market this year—could face more stress.
Stocks ended Wednesday with a mixed picture. The Dow saw defensive moves, chip names found some strength, and bonds didn’t give stocks much support.
