Dow Jones Plummets 2.4% as Oil Surge Sparks Market Turmoil Amid Iran-US Conflict

The Dow Jones Industrial Average tumbled more than 2.4% on Tuesday as escalating tensions between Iran and the US sent oil prices soaring. Geopolitical instability rattled global markets, with Wall Street bracing for prolonged volatility. Crude oil benchmarks jumped sharply, pushing the national average gasoline price up $0.10 to $3.11 per gallon.

Tech stocks bore the brunt of the selloff, with semiconductor giants Nvidia, AMD, and TSMC leading declines. The Philadelphia Semiconductor Index teetered NEAR its 50-day moving average—a critical technical support level last tested in December. Meanwhile, haven flows propelled the US dollar to fresh highs as measured by the DXY index.

Gold's four-day rally abruptly reversed with a 4.4% drop, demonstrating the market's whipsaw dynamics. The AI trade—recently a market stalwart—showed vulnerability as chip stocks cratered. Investors now await Tehran's response to regional strikes that have already impacted oil infrastructure across nine countries.