An oil refinery in Houston. (Mark Felix/Bloomberg)
March 27, 2026 8:19 AM, EDT
| Updated: March 27, 2026 11:55 AM, EDT
NEW YORK — U.S. stocks are falling March 27 as Wall Street stumbles toward the finish of a fifth straight losing week, which would be its longest such streak in nearly four years.
The S&P 500 sank 0.7% and deepened its losses a day after its worst drop since the war with Iran began.
The Dow Jones Industrial Average was down 333 points, or 0.7%, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 1.1% lower.
The losses are a break from Wall Street’s pattern this week, where the U.S. stock market flip-flopped from gains to losses each day as hopes rose and fell about a possible end to the war.
Moments after the U.S. stock market finished its dismal March 26 of trading, President Donald Trump offered another potential signal for hope. He extended a self-imposed deadline to “obliterate” Iran’s power plants to April 6 if it doesn’t allow oil tankers to resume their exits from the Persian Gulf to the open ocean through the Strait of Hormuz.
Oil prices eased immediately after Trump’s announcement in a sign of hope in financial markets that some normalcy may return to the strait. But oil prices resumed their climb as the sun moved westward from Asia to Europe and back to Wall Street.
When Trump announced a delay to the bombing on March 23, crude oil futures immediately fell 10%.
Compare this to the reaction to yesterday afternoon, when he extended the delay another 10 days (red box). It was short-lived, and now, about 12 hours later, prices are… pic.twitter.com/HjOTVsNBQ8
— Jim Bianco (@biancoresearch) March 27, 2026
Despite Trump’s second announcement of a delay this week, fighting continued in the Middle East. Iran gave no signs of backing down, while Israel threatened to “escalate and expand” its attacks on Iran.
“The diplomatic dissonance this week between the U.S. and Iran dismayed investors,” said Doug Beath, global equity strategist at Wells Fargo Investment Institute. “By the end of the week, risk appetite could not withstand the fog of war.”
“Any further statements by Trump about a deal are white noise to the markets,” Jim Bianco, president and macro strategist at Bianco Research, wrote in a social media post. “Only if the IRANIANS say the talks are going well will it impact markets.”
READ MORE: Brace for $200 Oil if War Lasts Until June, Macquarie Warns
The price for a barrel of Brent crude rose 2.2% to $104.13 and is up from roughly $70 before the war began. Benchmark U.S. crude rose 3% to $97.28 per barrel.
The fear in financial markets is that the war will disrupt the production and transport of oil and natural gas in the Persian Gulf for a long time. It could keep so much oil and gas out of the world’s markets that it sends a punishing wave of inflation through the global economy. Not only would it raise prices for drivers buying gasoline, it could push businesses that use any trucks, ships or planes to move their products to raise their own prices.
If the war continues until the end of June, strategists at Macquarie say the price of oil could reach $200 per barrel. So far, the highest oil prices have ever been gotten has been just above $147 during the summer of 2008. That’s when Iran’s testing of missiles, including one that could reach Israel, and strong demand for oil from China helped send prices spiking despite the Great Recession.
Fresh from TMC, ATA President Chris Spear takes a candid look at what today’s fleet maintenance trends reveal about the broader state of trucking. Tune in above or by going to RoadSigns.ttnews.com.
High gasoline prices and the war are already hitting confidence among U.S. consumers, whose spending makes up the bulk of the economy. Sentiment among them fell slightly more in March from February than economists expected, according to a survey by the University of Michigan.
U.S. consumers also said in the survey that worried about inflation jumping in the near future. They’re bracing for inflation of 3.8% in the coming 12 months, up from 3.4% in February. That’s the largest one-month increase in nearly a year.
Expectations of higher inflation can kick off a vicious cycle of behavior that only worsens inflation. Such worries have virtually eliminated hopes among traders that the Federal Reserve could cut interest rates this year to boost the economy. While lower rates would help give the job market and prices for investments an upward jolt, they would also risk making inflation worse.
Long-term Treasury yields rose even further in the bond market following the March 27 rise for oil prices. The yield for the 10-year Treasury climbed to 4.44% from 4.42% late March 26 and from just 3.97% before the war began.
That rise has already sent rates jumping for mortgages and for other loans taken by U.S. households and businesses, slowing the economy.
On Wall Street, the majority of stocks fell, including three out of every five in the S&P 500. The index, which is the main measure of the U.S. stock market’s health, is roughly back to where it was in August and nearly 8% below its all-time high set early this year.
Big Tech stocks were among the heaviest weights on the market, including drops of 0.9% for Nvidia and 2.9% for Amazon.
Companies selling things that are not essentials, which customers could stop buying if they’re spending too much on gasoline, also sank sharply.
Norwegian Cruise Line Holdings lost 4.5%, Airbnb fell 4.5% and Lululemon Athletica dropped 3.7%.
Amon the winners on Wall Street was Netflix, which added 0.5% a day after announcing price increases to its services in the United States.
In stock markets abroad, indexes fell in Europe following a mixed finish in Asia.
In the bond market, Treasury yields swiveled.
The yield for the 10-year Treasury rose as high as 4.48% before pulling back to to 4.41%. That’s down from 4.42% late March 26, but it’s still well above its 3.97% level from before the war began.
That rise has already sent rates jumping for mortgages and for other loans taken by U.S. households and businesses, slowing the economy.
AP business writers Chan Ho-him and Matt Ott contributed.
