Dow Jones drops Nasdaq stays green S&P 500 slips: Dow down 400 points while Nasdaq rises: Why Dow Jones drops over 400 points today while Nasdaq stays in green — S&P 500 also slips as US stock market shows mixed signals
Wall Street struggled to extend the previous session’s rebound as global markets focused on the expanding Middle East conflict involving the US-Israel coalition and Iran, now entering its sixth day of military activity. At the same time, oil prices surged again, with West Texas Intermediate crude trading around $77–$78 per barrel and Brent crude moving above $84, fueling concerns about inflation and interest rates. Investors are also watching the upcoming US jobs report, which could influence Federal Reserve policy and the broader outlook for stocks.
Broadcom (AVGO) surged 4.79% to $332.74, anchoring the tech index. Intel (INTC) added 0.69%, and SoFi Technologies climbed 3.90%. Meanwhile, Nvidia (NVDA) slipped 0.23% after reports emerged that the chipmaker halted H200 chip production for the Chinese market — a move reflecting rising US-China trade friction stacked on top of the Middle East crisis.
The Trade Desk (TTD) was the session’s standout, surging 22.17% to $30.75 on volume of 28 million shares. Palladyne AI Corp (PDYN) jumped 26.24%. These moves prove that stock-specific catalysts can still cut through macro headwinds on any given trading day.
Gold dipped slightly on Thursday — down 0.28% to $5,120.50 per ounce — suggesting markets are not yet pricing in a full inflation spiral. But gold is still trading far above its 52-week low of $2,882, a clear sign that war risk and inflation concern remain deeply embedded in commodity markets.
Why the Dow Jones is down more than 400 points today while Nasdaq remains in green
The biggest reason Dow Jones is down today while Nasdaq is up lies in the different composition of the two indices. The Dow Jones Industrial Average tracks 30 large industrial and consumer companies, including firms heavily exposed to energy costs, transportation, and manufacturing.
When oil prices surge, these companies often face higher operating costs. Airlines, industrial manufacturers, and logistics firms become particularly sensitive to rising fuel prices. In contrast, the Nasdaq Composite index is dominated by technology and semiconductor companies. These firms tend to be less directly affected by energy prices. Instead, their performance depends more on innovation cycles, artificial intelligence demand, and global digital spending.
Because of this structural difference, investors often shift capital toward tech stocks during periods of commodity volatility. That shift helped keep Nasdaq slightly positive even as the Dow dropped more than 400 points.
Dow down 400 points while Nasdaq up: Middle East conflict drives market volatility and investor caution
The ongoing Middle East conflict between Iran and the US-Israel coalition continues to dominate global market sentiment.
Thursday marked the sixth day of escalating military activity, with no immediate signs of de-escalation. President Donald Trump said the United States is “doing very well on the war front,” while the White House confirmed that American forces have struck more than 2,000 targets and are moving toward complete control of Iranian airspace.
Whenever geopolitical tensions escalate, financial markets usually react with caution. Investors fear disruptions to global trade routes, energy supply chains, and shipping lanes.
In this case, the biggest concern centers on the Strait of Hormuz, one of the world’s most critical oil transportation corridors. Nearly 20% of global oil shipments pass through this narrow waterway, making it extremely sensitive to conflict in the region.
Even though the United States has announced plans to provide risk insurance and naval escorts for ships traveling through the strait, markets remain nervous due to ongoing infrastructure damage and tanker attacks.
Dow down 400 points while Nasdaq up: Oil prices surge above $78 as energy supply fears grow
One of the clearest market reactions to the conflict has been the sharp rise in global oil prices.
Energy markets rallied strongly Thursday morning as traders priced in the possibility of supply disruptions.
West Texas Intermediate crude futures climbed above $77.70 per barrel, briefly touching $78, representing more than a 4% increase in a single session.
Meanwhile, Brent crude oil, the global benchmark, rose above $83.90 and briefly crossed $84 per barrel.
Iran is the fourth-largest producer in the OPEC oil cartel, meaning any disruption to its production capacity can have significant ripple effects across global energy markets.
Higher oil prices often create a chain reaction across financial markets. Transportation costs rise. Manufacturing expenses increase. Inflation expectations climb.
This is why investors fear that sustained oil price increases could force the Federal Reserve to reconsider its interest rate outlook, adding another layer of uncertainty to the stock market.
Nvidia halts China chip production as tech stocks remain mixed
Technology stocks played a key role in keeping the Nasdaq index stable today, although some major tech companies still faced pressure.
Shares of Nvidia slipped around 1% early in the trading session after reports that the company halted production of its H200 chip designed for the Chinese market.
The move follows increasing regulatory scrutiny and export restrictions affecting advanced semiconductor technology.
Despite Nvidia’s dip, other technology firms continued to trade actively. Stocks such as Broadcom, Intel, and AI-related companies attracted strong investor interest.
Among the most active stocks of the day were Trade Desk, which surged more than 22%, and Palladyne AI, which jumped over 26%, reflecting continued enthusiasm around artificial intelligence companies.
These gains helped support the Nasdaq Composite, preventing it from falling alongside the Dow.
Commodities and metals markets show mixed signals as gold and silver slip
While oil prices surged, other commodities showed more modest moves.
In the metals market, gold prices slipped slightly to around $5,120, declining 0.28% during trading. Silver also edged lower to about $83, down roughly 0.19%.
Precious metals often rise during geopolitical crises because investors treat them as safe-haven assets. However, short-term profit-taking and strong dollar positioning limited gains during this session.
Energy commodities remained the dominant force in global markets.
Meanwhile, natural gas prices hovered near $2.94, reflecting stable demand conditions.
Commodity volatility is likely to remain elevated as traders monitor developments in the Middle East conflict and potential disruptions to global energy infrastructure.
Energy stocks and defense-linked equities historically outperform during sustained oil price spikes and active military conflict. Tech — particularly AI infrastructure and software names — is showing relative resilience this cycle. The weakest areas are consumer discretionary, transportation, and any sector with thin margins exposed to raw energy costs.
The S&P 500 at 6,848.79 remains near all-time high territory despite Thursday’s slip. That signals the underlying earnings picture has not broken yet. But a further Middle East escalation, oil pushing above $90, or a hawkish jobs report Friday could shift that calculus fast. Diversification, selective energy exposure, and a close watch on Fed commentary are the three anchors every investor needs heading into the weekend.
Post Comment