Dow Jones plunges nearly 800 points: longest weekly losing streak in 4 years

• Brent crude reached $112.57 per barrel while US crude hit $99.64, near multi-year highs, as the Strait of Hormuz closure threatens supply disruptions and fuels inflation fears
• The Nasdaq Composite fell 2.15% and is now nearly 13% below its October peak, with megacap tech stocks leading losses alongside weak consumer discretionary sectors
• Markets now price in a 25% chance of a Fed rate hike by October, a dramatic shift from earlier easing expectations, as rising energy prices complicate monetary policy outlook

Summary

Market Performance:

US stocks suffered significant losses on Friday, March 27, 2026, marking the fifth consecutive weekly decline—the longest losing streak in nearly four years. The Dow Jones plunged 793.47 points (-1.73%) to 45,166.64, briefly entering correction territory intraday. The S&P 500 fell 1.67% to 6,368.85, while the Nasdaq Composite dropped 2.15% to 20,948.36, now down nearly 13% from its October peak. All three indexes closed at six-month lows.

Key Drivers:

Escalating Middle East tensions involving Iran and surging oil prices severely impacted investor sentiment. Brent crude reached $112.57 per barrel, with US crude at $99.64—both near multi-year highs. The closure of the Strait of Hormuz heightened supply disruption fears and inflation concerns. Despite President Trump announcing a pause on "Energy Plant destruction" and citing ongoing diplomatic talks, markets remained skeptical as Iran reportedly rejected peace proposals.

Sector Impact:

Large-cap technology and consumer discretionary stocks led losses. The Nasdaq 100 entered correction territory, while the Russell 2000 confirmed its correction earlier. Cruise operators Carnival and Norwegian declined sharply following weaker outlooks, signaling slowing consumer demand.

Monetary Policy Implications:

Rising energy prices have shifted Federal Reserve expectations dramatically. Markets now price in a 25% probability of a rate hike by October, reversing earlier easing expectations. US consumer sentiment fell to a three-month low in March, reflecting economic uncertainty.

Outlook:

With geopolitical tensions unresolved and inflation risks mounting, elevated volatility is expected to persist across global equities until greater clarity emerges on the conflict and energy markets.