Wall Street's 2026 start falters amid energy costs, global tensions
Wall Street's start to 2026 hasn't gone as planned. Major indexes like the Nasdaq and Dow have dropped sharply, with the Nasdaq down 10% from its recent high.
Hopes for a strong year faded fast thanks to rising energy prices and global tensions.
Oil jumps 55%, erases S&P500 gains
A huge 55% jump in oil prices (sparked by US and Israel's military moves against Iran) has erased seven months of gains from the S&P 500.
The energy sector was the only one still in the green, while most others struggled.
Middle East crisis raises recession risks
The ongoing crisis in the Middle East is making things even shakier: oil supplies are disrupted, inflation fears are up, and hopes for Fed rate cuts have faded.
With both stocks and bonds taking hits, analysts worry that higher energy costs could slow growth or even push parts of the economy toward recession.