Dow Plunges 800 Points as $900 Billion Vanishes From U.S. Stocks at Open
U.S. stocks dropped sharply Monday morning, wiping out more than $900 billion in market value within minutes of the opening bell as oil prices surged and geopolitical tensions rattled investors.
The sudden selloff reflects growing concern that rising energy costs could reignite inflation and derail expectations for interest-rate cuts later this year.
According to market data reported by Yahoo Finance and other outlets, the Dow Jones Industrial Average fell more than 800 points early Monday, while the S&P 500 and Nasdaq also opened lower as traders reacted to oil climbing above $100 per barrel.
The drop hit several sectors hard, with airline, cruise, and banking stocks leading the decline as investors reassessed economic risk tied to higher fuel costs and global instability.
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Goldman Sachs analysts warned that “a 1% drop in economic growth could reduce S&P 500 earnings by about 4%.”
Much of the pressure is tied to the expanding conflict involving Iran, which has pushed oil prices sharply higher and raised fears of supply disruptions through critical shipping routes.
Economists say sustained energy shocks could complicate the Federal Reserve’s plans to lower interest rates, particularly if rising gasoline prices begin feeding back into broader inflation.
For now, traders are watching oil markets, geopolitical developments, and upcoming economic data to determine whether the selloff deepens or stabilizes later in the week.
Markets remain highly sensitive to any new developments.
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