Stocks plunged Tuesday morning as oil and natural gas prices surged higher.
The Dow Jones Industrial Average dropped by around 1,200 points, a 2.4 percent decline from yesterday’s close. The index is on track for its biggest one-day retreat since April 2025, when shares sold off in reaction to President Trump’s “Liberation Day” tariffs.
Futures for Brent Crude, the global oil benchmark, jumped by nearly eight percent, briefly topping $85 a barrel, before moderating somewhat. For the day, Brent is up around 8.2 percent at at around $84.16 a barrel. Analysts are closely watching whether the price threatens to rise above $95 a barrel, the three-year high that economists regard as signaling an economic shock.
Natural gas prices in the U.S. climbed by five percent.
The S&P 500 index fell by around 2.25 percent, as the Nasdaq composite dropped by 2.4 percent. The Russell 2000, composed of domestically focused smaller companies, fell by 3.5 percent.
Prices of metals were also falling on Tuesday, leaving investors with few options for safety. Gold dropped 4.6 percent, silver plunged 9.2 percent, and copper declined 2.4 percent. Palladium and plutonium futures fell sharply.
Stocks in Europe and Asia also declined sharply. The major European indexes were down between three and four percent. Japan’s Nikkei fell by around three percent.
Concerns that higher energy prices could boost inflation or push the Fed to become more hawkish sent U.S. Treasury prices lower, pushing yields higher. The 10-year yield reached 4.1 percent.
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