S&P 500 Ends Nine-Day Rally After Iran Strike

On Wednesday the S&P 500 dropped 0.74%, snapping a nine-day winning streak. The Dow lost about 620 points, its biggest single-session decline in weeks, and the Nasdaq fell 0.89%. S&P 500 futures were down roughly 0.5% and Nasdaq 100 futures fell about 0.7% later in the day.

Markets reacted after Iran struck Kuwait International Airport early Wednesday. A day earlier, U.S. Central Command reported it intercepted multiple Iranian ballistic missiles and drones and carried out self-defense strikes on Qeshm Island in the Persian Gulf. The exchanges of fire pushed crude oil prices higher.

Energy was the only sector to close higher, up 1.38%. Technology led losses, sliding 1.52%. Broadcom shares fell about 13% after reporting revenue below expectations, and CrowdStrike dropped roughly 10% after issuing weaker guidance. Those declines weighed on major indexes.

The conflict disrupted flows through the Strait of Hormuz and tightened supply expectations, lifting crude prices. Higher oil supported a shift toward defensive positioning and added to inflation concerns among some investors.

Cryptocurrency markets fell more sharply. Bitcoin slipped to about $61,000 after the exchange, triggering around $1.66 billion in liquidations across crypto positions during the overnight session; that total increased through Wednesday. Wallets linked to the defunct Mt. Gox moved 10,422 BTC, roughly $739 million, to a new address. Market observers are watching $60,000 as the next technical support level.

Keith Lerner, chief investment officer at Truist Wealth, described the pullback as overdue, noting fundamentals remain solid and that markets often take ‘two steps forward, one step back.’

Traders will monitor oil prices, developments in the Gulf and upcoming corporate earnings for signals on whether risk appetite will recover or volatility will continue.