Sharp Turmoil on Wall Street: Dow Jones Plunged and Oil Prices Soared
A volatile trading day on the New York Stock Exchange ended with sharp declines across leading indices, driven by Middle East escalation and a surge in bond yields.
Trading on the New York Stock Exchange closed last night with sharp declines at the end of an extremely volatile session, as investors grappled with negative factors pulling major indices downward. The decline was led by the Dow Jones, which plunged 2.1%—the sharpest daily drop since April 2025. Simultaneously, the S&P 500 lost 1% of its value, while the Nasdaq weakened by 1.2%. Meanwhile, the yield on 30-year U.S. government bonds climbed to a nearly two-decade high.
Oil prices also saw sharp spikes. The increase followed a statement by U.S. President Donald Trump that the United States would act "with force" against Iran in response to an attempted attack on American forces in the Middle East. As a result, WTI crude oil jumped more than 7%, crossing the $90 per barrel threshold, fueling fears of renewed inflationary pressure.
Chip technology stocks also suffered. The SOXX ETF fell approximately 3%, completing a four-day losing streak and recording a weekly drop of about 9%. Micron shares fell 6%, AMD weakened by over 3%, and KLA lost more than 8% of its value.
The Israeli stock sector presented a mixed picture. Teva shares stood out, jumping following positive financial reports and an upward revision of its 2026 annual revenue forecast to a range of $16.5 billion to $16.85 billion. Conversely, Lemonade shares plunged due to a lukewarm outlook for the remainder of the year, despite beating second-quarter analyst estimates. Fiverr shares also declined after results fell slightly short of expectations. In contrast, Silicom shares recorded double-digit growth after beating second-quarter forecasts and signaling a return to profitability by year-end.
