Wall Street Pares Losses on Netanyahu Strait of Hormuz Comments; European Stocks Plunge as Energy War Escalates

Market Overview

U.S. stocks fell for a second consecutive session on Thursday, March 19, though all three major indexes closed well off their worst levels of the day. The late-session recovery was sparked by comments from Israeli Prime Minister Benjamin Netanyahu, who said Israel was helping the U.S. “in intel and other means” to reopen the Strait of Hormuz and that the war may end sooner than many fear. European markets, however, suffered heavy losses as escalating attacks on energy infrastructure in the Middle East sent oil and gas prices surging during the European trading session.

U.S. Markets

Index	Close	Change	% Change
Dow Jones Industrial Average	46,021.43	-203.72	-0.44%
S&P 500	6,606.49	-18.21	-0.27%
Nasdaq Composite	22,090.69	—	-0.28%

(Source: CNBC)

The indexes had recovered from steep session lows — the Dow was down nearly 500 points (about 1.1%) at its worst, while the S&P 500 and Nasdaq had fallen roughly 1% and 1.4%, respectively — before paring losses into the close. Netanyahu’s remarks that Iran had lost the ability to enrich uranium and make ballistic missiles gave markets a late lift.

S&P 500 Breaks Below 200-Day Moving Average

A key technical development: the S&P 500 fell below its 200-day moving average for the first time since May 2025. According to LPL Financial’s chief technical strategist Adam Turnquist, “A breakdown below that level, especially if followed by a breach of the November lows at 6,522, would raise more serious questions about the staying power of this bull market.”

All three major averages are on pace for a fourth consecutive losing week. Here’s how far the indexes stand from their 52-week highs:

• Dow Jones: −9.1%
• Nasdaq Composite: −8.4%
• S&P 500: −5.9%
• Russell 2000: −9.7% (approaching correction territory)

European Markets

European stocks suffered sharp losses on Thursday as the Iran war intensified with attacks on energy infrastructure on both sides. The pan-European Stoxx 600 tumbled 2.39%, with all sectors except oil and gas selling off.

Index	Close	Change	% Change
STOXX Europe 600	583.64	-14.29	-2.39%
Germany DAX	22,839.56	-662.69	-2.82%
UK FTSE 100	10,063.50	-241.79	-2.35%
France CAC 40	7,807.87	-162.01	-2.03%
Italy FTSE MIB	43,701.38	-1,039.96	-2.32%
Spain IBEX 35	16,905.90	-393.20	-2.27%
Sweden OMXS30	2,908.97	-106.31	-3.53%
Switzerland SMI	12,459.54	-305.94	-2.40%

(Source: CNBC Europe Markets)

Basic resources was the hardest-hit sector, with London-listed mining majors Antofagasta and Fresnillo each sliding more than 6% as investors were rattled by inflation fears and surging energy prices that could squeeze margins.

Oil Prices and Iran War Escalation

Energy markets swung wildly on Thursday as attacks on critical infrastructure on both sides of the conflict rattled traders:

Commodity	Settle Price	Change
Brent Crude (May)	$108.65/bbl	+1.18% (hit $119 intraday)
WTI Crude (Apr)	$96.14/bbl	-0.19%
U.S. Natural Gas	$3.12/MMBtu	+1.7%
Dutch TTF Gas (Europe)	~61 EUR/MWh	+11%
RBOB Gasoline (Apr)	$3.13/gal	~+1% (near 4-year high)

(Source: CNBC)

Brent crude briefly touched $119 per barrel — its highest level in years — before pulling back sharply after Netanyahu’s comments. WTI also fell in post-settle trading to around $94.64. Key developments in the energy war:

• Iran struck Qatar’s Ras Laffan Industrial City, the world’s largest LNG export facility, causing “extensive damage.” QatarEnergy CEO Saad al-Kaabi said the attack took out 17% of the country’s LNG export capacity. Qatar condemned the attack as a “dangerous escalation.”
• Israel attacked Iran’s South Pars gas field on Wednesday, prompting the retaliatory strikes on Qatar.
• Netanyahu said Israel was helping the U.S. open the Strait of Hormuz and that Iran had lost the ability to enrich uranium and produce ballistic missiles.
• API President Mike Sommers said opening Hormuz is a “top priority” for the Trump administration after a meeting with VP JD Vance and Energy Secretary Chris Wright.
• WTI crude remains more than 48% higher this month.

Fed Fallout: No Rate Cuts Expected in 2026

The day-after reaction to Wednesday’s Fed meeting weighed on sentiment. While the Fed held rates steady, traders have now taken expectations for even one rate cut in 2026 completely off the table. Key takeaways:

• Macquarie predicts a rate hike: The firm’s economists said the Fed’s next move will be an increase, pushed out to the first half of 2027 due to inflationary pressures from the oil shock.
• Narrow vote: Seven of 19 FOMC participants favored either holding steady or hiking. If just three more officials shift, a majority would oppose any cuts.
• Powell’s uncertainty: The Fed chair used some form of “uncertain” more than half a dozen times in his press conference, emphasizing the impossibility of modeling policy during wartime.

Gold Hits Worst Week Since 1983

In a striking reversal, gold was on pace for its worst week since February 1983, falling roughly 10% week-to-date amid global inflation fears:

• Spot gold fell 2% to $4,718.60/oz; futures dropped 3.8% to $4,709.90
• Silver plunged 5% (spot) and 7.7% (futures)
• Retail investors dumped gold (SPDR Gold Shares saw $2.8 million net selling in the first two hours) but bought the dip on silver ($19 million into iShares Silver Trust)

Corporate Highlights

• Micron Technology (MU) −3.8%: Fell despite blowout earnings — adjusted EPS of $12.20 vs. $9.31 expected, revenue of $23.86B vs. $20.07B expected. Revenue nearly tripled year-over-year. Citi attributed the decline to profit-taking given the stock is up over 350% in the past 12 months.
• Alibaba (BABA) −7%: Dropped after weaker-than-expected Q4 results. Revenue of 284.8B yuan missed the 290.7B estimate; net income tumbled 66% YoY to 15.6B yuan.
• Uber (UBER) / Rivian (RIVN): Uber plans to invest up to $1.25 billion in Rivian for a deal to deploy up to 50,000 robotaxis across multiple countries through 2031. Rivian gained over 1% while Uber slipped about 2%.
• Eli Lilly (LLY): Late-stage data for next-gen obesity drug retatrutide showed “potentially best-in-class” weight loss of 9%–14.3% at 40 weeks. Stock barely moved as the market sees limited incremental revenue vs. existing Mounjaro.

Economic Data

• Jobless claims: Initial filings fell to 205,000 (vs. 215,000 expected), down 8,000 from the prior week, continuing the low-hire, low-fire labor market pattern.
• Philly Fed Manufacturing Index: Unexpectedly jumped to 18.1 (vs. 8.4 expected) on a surge in current shipments.
• Treasury yields: Both yields and the dollar rose — bucking conventional wartime wisdom, according to Charles Schwab, as traders bet the U.S. is insulated from the oil shock as a net exporter.

Market Outlook

Investor sentiment has turned sharply negative. The AAII weekly survey showed bearish sentiment jumped to 52% — the highest since last May — while just 30.4% of respondents were bullish.

Markets enter Friday’s session with the S&P 500 heading for a fourth losing week. Both the Dow (−8.3% from record) and Nasdaq (−8% from all-time high) are approaching correction territory. However, stock futures ticked slightly higher in post-settle trading, buoyed by Netanyahu’s remarks.

“All the near-term action depends on the Strait opening,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “We think it opens in a matter of weeks not months.”

(Source: CNBC)

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Disclaimer: This post is for informational purposes only and does not constitute investment advice. All data sourced from CNBC and Reuters. Market conditions are subject to rapid change.