Dow Drops 560 Points as Oil Climbs Above $102 on U.S.-Iran Tensions

The Dow Jones Industrial Average took the worst of Friday’s sell-off, falling 1.1%, or about 560 points, as oil prices rose on heightened tensions between the United States and Iran. The index had dropped as much as 750 points during the session, with fewer than five Dow components ending the day in the green, according to Investor’s Business Daily’s live market coverage.

American Express paced the decliners, falling more than 3%. The company reported a 31% increase in third-quarter profit and raised its annual profit forecast, but quarterly revenue slightly missed expectations, and the company said it plans to cut about 5% of its workforce.

Other blue chips down more than 2% included Home Depot, Caterpillar, Merck and Salesforce. Chevron led the Dow with a gain of around 2.5%, reaching another all-time high.

Oil climbs on fears of a wider conflict

West Texas Intermediate crude futures climbed nearly 3% to around $102.35 a barrel. Iran warned that renewed strikes by the United States and Israel would set off a wider response targeting airports, oil pipelines and other infrastructure across the Persian Gulf, the Wall Street Journal reported. The rise in crude follows U.S. and Israeli planning for possible post-midterm strikes on Iran.

Small caps were also dragged lower, with the Russell 2000 down 0.9%. The Nasdaq reversed higher for a gain of 0.3%, and the S&P 500 cut its loss to 0.1%.

The 10-year Treasury yield rose 4 basis points to 4.99%, and bitcoin traded around $81,700.

SpaceX bounces on carrier talk

SpaceX rebounded in the Nasdaq-100 on news it is in talks with cellular infrastructure firms to secure access to 80,000 cell towers for a nationwide wireless carrier program. Crown Castle jumped nearly 12% and American Tower rose 6%, according to Investor’s Business Daily.

Reporting based on coverage by Investor’s Business Daily, MarketWatch and the Wall Street Journal.