The three major indexes ripped higher from their steep losses
Stocks fall, oil rises as Trump comments dent hopes for a U.S.-Iran war resolution
Stocks fell Thursday in volatile trading as oil prices surged following President Donald Trump’s remarks that the Iran war would continue for weeks.
The Dow Jones Industrial Average traded down 125 points, or 0.3%. The S&P 500 and the Nasdaq Composite were lower by 0.1% and 0.2%, respectively.
The three major indexes ripped higher from their steep losses earlier in the day to briefly turn positive after Iranian state media said that the Middle Eastern country is working with Oman on a protocol to “monitor” ships passing through the Strait of Hormuz. At their lows, the Dow was down more than 600 points, or 1.4%, while the S&P 500 and Nasdaq were down 1.5% and 2.2%, respectively.
“It’s pivotal for the United States that the Strait is reopened, not so much because of oil but because of helium,” said Todd Schoenberger, CIO at CrossCheck Management, noting that helium is “more valuable than foreign oil” given its usage in semiconductor processing and that “there is no substitute for it.”
“Expect more volatility going into the long weekend,” he added.
The indexes continued to oscillate between gains and losses throughout the session following the developments before ultimately moving lower. The CBOE Volatility Index, otherwise known as Wall Street’s fear guage, rose above 25.
