The Dow Jones Industrial Average (^DJI) was down 521.28 (-1.0531%) points today, while Dow Futures (YM=F) was down 545.00 (-1.1122%) points, as global markets grappled with a massive geopolitical shock. The dominant narrative was the fallout from coordinated U.S. and Israeli military strikes against Iran over the weekend. This escalation, which reportedly targeted the Iranian leadership, sent crude oil prices surging nearly 10% and triggered a flight to safety. While the ISM Manufacturing Index for February was also released today, its impact was largely overshadowed by the threat of a wider regional war and potential disruptions to the Strait of Hormuz.
The financial and technology sectors were the hardest hit by the sudden shift in risk appetite. Goldman Sachs (GS) led the decline, down 7.56%, as investors worried about the impact of geopolitical instability on global capital markets. Similarly, American Express (AXP) was down 6.81%, and JPMorgan Chase (JPM) fell 3.16%. In the tech space, the AI-driven rally stalled as Nvidia (NVDA) was down 3.27% and Apple (AAPL) dropped 2.49%, with traders rotating out of high-valuation growth stocks.
Defensive equities served as the primary hedge against the volatility. Merck (MRK) was the top performer, up 3.42%, as healthcare stocks benefited from their non-cyclical nature. Walmart (WMT) gained 2.62%, and UnitedHealth Group (UNH) was up 2.15%. Other defensive gainers included Amgen (AMGN), up 2.12%, and Verizon (VZ), which rose 1.87%. This rotation highlights a clear preference for domestic stability and essential services as the international landscape remains increasingly uncertain today.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.