Markets slide as Mideast conflict triggers oil and bond rout

The Dow Jones Industrial Average dropped 419.02 points to 52766.88, while the S&P 500 shed 0.71% and the Nasdaq Composite fell 1.03%. The selloff mirrored a worldwide rout in fixed income, where the two-year Treasury yield climbed to 4.392%, its highest level since January 2025. Meanwhile, the 10-year Treasury note yield hit 4.795%, a 20-month peak, as global markets reacted to Japan’s 10-year yield touching 3% for the first time since 1996.

Energy inflation remains the primary catalyst for the volatility. Oil prices jumped 5.20% to $90.22 a barrel following reports of rocket attacks on Saudi tankers in the Strait of Hormuz and subsequent U.S. military strikes against Iran. Hedge fund manager Lorenzo Di Mattia noted that the trend is distinctly global, warning that sustained pressure on sovereign yields will continue to weigh on equity valuations. The impact is already visible in the travel sector, with Carnival and Norwegian Cruise Line shares down more than 30% from their 2026 highs.

Despite the broader downturn, corporate shifts and infrastructure developments provided isolated activity. Apple shares climbed 2.6% to $325.13 as John Ternus succeeded Tim Cook, who concluded a 15-year tenure as CEO. In the AI sector, Nvidia shares dipped 1.5% despite a $35 billion cloud-computing agreement between Anthropic and Lambda. Meanwhile, Novartis surged 6% following positive results from late-stage clinical trials for a multiple-sclerosis treatment, offering a rare bright spot amid the market's defensive pivot.