US Stock Market: S&P 500 Index Falls for Three Consecutive Days as Oil Prices Surge Again, Intensifying Inflation Concerns

Technology stocks drag down U.S. stocks, while the Iran war continues to push oil prices higher and raise inflation concerns.

The S&P 500 index fell 1.5%, marking its third consecutive day of decline.

The seven major U.S. tech giants’ index dropped 1.9%, nearly 10% below its October high.

The Iran war has entered its 13th day, with U.S. President Trump and Iran’s new Supreme Leader both showing tough stances.

Trump stated that preventing Iran from acquiring nuclear weapons and posing a threat to the Middle East is “far more important than oil costs.”

Iran’s new Supreme Leader, Ayatollah Ali Khamenei, said he will seek to ensure the Strait of Hormuz remains effectively closed.

Interactive Brokers senior economist José Torres said Khamenei’s statements “pose a significant obstacle for investors hoping for a quick resolution to the conflict.”

Dec Mullarkey, Managing Director at SLC Management, said, “There are hardly any signs that either side is willing to back down.”

He expects that if shipping does not resume by the end of March, oil prices could hit record highs.

As oil prices rise and boost inflation expectations, bond traders are no longer betting on a 100% chance of the Federal Reserve cutting rates once in 2026.

Traders are also paying attention to the latest developments on tariffs. The U.S. government has launched its first comprehensive trade investigation, paving the way for new tariff measures.

Concerns over private credit still pressure alternative asset management firms and large banks, with Morgan Stanley restricting redemptions from a private credit fund.

At the close, the S&P 500 fell 1.5% to 6,672.62 points.

The Dow Jones Industrial Average declined 1.6% to 46,677.85 points.

The Nasdaq Composite dropped 1.8% to 22,311.98 points.

The Nasdaq 100 fell 1.7% to 24,533.58 points.

The Russell 2000 declined 2.1% to 2,488.99 points.