US Stock Market | Wall Street closes down as oil prices spike on Middle East conflict

Oil Market Impact - The expansion of the conflict in the Middle East has raised fears of disruptions in the Strait of Hormuz, leading to an 8.5% increase in U.S. crude prices to $81 per barrel, the highest since July 2024, while global benchmark Brent crude rose 4.9% to $85.41 [1] - Traders are concerned that prolonged interruptions in oil supply could contribute to inflation and slow economic growth [1] Stock Market Reactions - The stock market experienced declines, with the Dow Jones Industrial Average falling 784.67 points (1.61%) to 47,954.74, and the S&P 500 losing 0.56% to 6,830.71 points [10] - S&P 500 indexes tracking major U.S. companies in industrials, materials, and healthcare sectors fell more than 2% each, while the passenger airlines sub-sector dropped 5.4%, with Southwest Airlines Co down 6.9% [10] Sector Performance - Energy and technology stocks limited losses, with the S&P 500 index for major U.S. energy companies rising 0.6% due to higher revenue prospects from energy prices, and Chevron gaining 3.9% [5] - S&P technology stocks increased by 0.4%, with Broadcom shares rising 4.8% after projecting its AI chip revenue to exceed $100 billion next year [6][11] Economic Indicators - Data showed that the number of Americans filing new applications for unemployment benefits remained unchanged last week, indicating stability in the labor market [11] - Stronger-than-expected ISM manufacturing and services results have led to higher unofficial payroll expectations, suggesting a robust economy that reduces the likelihood of interest rate cuts [8][11]