Wall Street Sees $900 Billion Wiped Out as Oil Surge Triggers Market Selloff
U.S. stocks plunged at the opening bell Monday, with early trading wiping out more than $900 billion in market value as investors reacted to a surge in oil prices and escalating global tensions.
The selloff came as crude oil jumped above $100 per barrel, raising fears that the expanding Middle East conflict could push inflation higher and slow economic growth.
According to market reports from Reuters and Yahoo Finance, the Dow Jones Industrial Average dropped more than 800 points early in the session, while the S&P 500 and Nasdaq also fell sharply as traders rushed to reduce risk.
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Travel and banking stocks led losses, with several major airline and cruise companies falling sharply, while energy companies held up better as oil prices climbed.
The spike in oil is being driven by instability tied to the widening Iran conflict, which has disrupted supply expectations and pushed markets worldwide into risk-off mode.
Investors are now watching whether oil prices continue climbing and whether central banks may delay interest-rate cuts as inflation fears return.