US stocks close deep in red, Dow tumbles 739 points on war jitters

• Brent crude briefly topped $100 per barrel as Iran vowed to keep oil chokepoints closed, raising fears of the biggest supply shock since the 1970s
• Energy stocks gained despite broader selloff, with Chevron surging 2.7% and ExxonMobil up 1.3%, while tech giants like Nvidia and AMD declined
• Federal Reserve faces critical policy meeting next week with near-zero odds of a rate cut, as war-driven oil spikes threaten to reverse recent disinflation progress

Market Summary: US Stocks Tumble on Geopolitical Tensions

Market Performance:

US equities suffered steep losses on Thursday, March 12, 2026, reaching their lowest levels since November. The Dow Jones plunged 739 points to 46,677.67, the S&P 500 fell 1.52% to 6,672.58, and the Nasdaq dropped 404 points to 22,311.98.

Key Driver:

The 13-day US-Iran conflict dominated market sentiment, with Iranian officials threatening to close critical oil shipping routes. Brent crude briefly topped $100 per barrel before retreating, raising concerns about the most significant supply shock since the 1970s. Oil traded around $98+, threatening to reverse recent inflation progress.

Sector Performance:

Energy stocks bucked the broader selloff, with the XLE ETF gaining 0.9%. ExxonMobil rose 1.3% to $153.53, while Chevron surged 2.7% to $196.97 on heavy volume of 41 million shares. Conversely, technology stocks underperformed, with Nvidia, AMD, and Micron all closing lower, breaking the sector's recent AI-driven momentum.

Federal Reserve Outlook:

The Fed faces a challenging policy meeting next week with the federal funds rate at 3.50%-3.75%. CME FedWatch data indicates virtually zero probability of a rate cut, as war-driven oil price spikes complicate the inflation outlook. Analysts expect the Fed to hold steady while monitoring the conflict's trajectory.

Additional Concerns:

Gold remained around $5,175 per troy ounce, showing a muted safe-haven response. Economists warn of a "rockets and feathers" effect, where gasoline prices may remain elevated for weeks after oil prices decline due to inventory lag at the retail level, prolonging consumer cost pressure even post-conflict.