Stock market news: Why Nasdaq, S&P 500, Dow Jones are down today. Expert gives ‘reality’ check

Wall Street suffered a broad selloff on Friday as rising oil prices, surging bond yields, and renewed inflation fears triggered a market downturn. The S&P 500 dropped roughly 1% after hitting a record high the previous day, while the Nasdaq Composite fell over 1% and the Dow Jones Industrial Average lost more than 400 points in morning trading. Technology stocks, particularly those tied to AI, experienced some of the heaviest losses. NVIDIA fell over 4%, dragging down the S&P 500 despite its 26% year-to-date gain. Applied Materials also declined despite reporting stronger-than-expected quarterly profits driven by AI infrastructure demand. Analysts suggested the pullback reflected concerns that AI-related stocks had become overvalued after months of rapid gains. The market turmoil coincided with rising tensions involving Iran, which disrupted global energy supplies and pushed crude prices sharply higher. Brent crude climbed above $109 a barrel, up from around $70 before the conflict escalated, while U.S. crude surged past $104. The Strait of Hormuz, a critical shipping route, faced heightened risks, further pressuring oil markets. Key indices saw significant declines: the S&P 500 fell 0.8%, the Nasdaq 100 dropped 1.2%, and the Dow Jones Industrial Average lost 0.7%. European and global markets followed suit, with the Stoxx Europe 600 down 1.4% and the MSCI World Index losing 1%. Meanwhile, the Bloomberg Dollar Spot Index rose 0.4%, while major currencies like the euro and British pound weakened against the dollar. Cryptocurrencies and commodities also reacted to the volatility. Bitcoin fell 2.8% to $79,136.29, and Ether dropped 3.6% to $2,214.12. Bond yields rose across the board, with U.S. 10-year Treasuries climbing nine basis points to 4.57%. Gold prices declined 2.1% to $4,555.47 an ounce, while West Texas Intermediate crude surged 3.1% to $104.30. Analysts warned of increased volatility ahead, urging investors to adopt a disciplined approach rather than relying on optimism. The downturn highlighted risks in overvalued sectors while underscoring the broader impact of geopolitical tensions on global financial markets.