Closing: Dow Jones drops over 700 points, enters correction territory

In the early hours of March 28 Beijing time, the U.S. stock market’s losses widened at Friday’s close. The Dow fell by more than 700 points, dipping into a pullback range, while the price of Brent crude traded above $110 per barrel. The reason is that events in the Strait of Hormuz have intensified investors’ concerns about energy supply, and U.S. President Trump’s latest remarks have failed to encourage traders to buy the dip.

The Dow fell 703.92 points, a decline of 1.53%, to 45,256.19; the Nasdaq fell 422.86 points, a decline of 1.98%, to 20,985.23; and the S&P 500 Index fell 95.12 points, a decline of 1.47%, to 6,382.04.

The S&P 500 Index is expected to fall for a fifth consecutive week, with a weekly decline exceeding 1%. The Nasdaq Composite, dominated by technology stocks, is down more than 2% so far this week, while the blue-chip Dow is basically flat this week.

On Thursday, the Nasdaq Index had already entered a pullback range, falling more than 10% from its record high set in October last year. On Friday, the stock market continued its downward trend. After the Dow entered the pullback range during morning trading, it continued to hover near that range on Friday. At present, the Dow is down 9.6% from its recent high. The S&P 500 Index is down about 8% from its record high.

International benchmark Brent crude oil futures rose 2%, to above $110 per barrel. U.S. West Texas Intermediate crude oil futures rose 3%, to above $97 per barrel.

U.S. President Trump extended the deadline for attacking Iran’s energy infrastructure to April 6, which is more than a week later than the original initial deadline that was set to end on Friday.

Trump posted on Truth Social, saying: “At the request of the Iranian government, please allow me to make this statement that I will pause the deadline for destroying energy facilities. Negotiations are ongoing; although the fake-news media and other parties have made the opposite incorrect statements, the negotiations are progressing very smoothly. Thank you all for your attention to this matter!”

This statement is the latest signal from the Trump administration seeking to end the U.S.-Iran war. The conflict has caused oil prices to surge, has already hurt voters at gas stations, and may cause Republicans to lose seats in the midterm elections.

A resolution to the conflict would be positive for the stock market. Since Feb. 28, when the U.S. and Israel attacked Iran’s energy infrastructure, the stock market has been falling.

Conflicting reports coming out of the White House are not helpful for stabilizing the situation. Some posts Trump has made on social media have been causing market volatility. The latest information includes reports about a ceasefire plan and negotiations with Iran (Iran has refuted them as untrue), as well as reports of more U.S. troops being sent to the Middle East. This suggests that preparations may be underway for a prolonged conflict and even a ground offensive.

Analysts said that, in the end, the extent to which the U.S. and Iran war affects the economy will clearly depend on how long the war lasts and how long the energy infrastructure in the Persian Gulf remains a target for attacks. The longer all of this continues, the more serious the impact.

However, according to reports, Iran’s foreign minister this week told the state media that Tehran has no intention of negotiating with the United States. Even as its leaders are reviewing the U.S. proposals for ending the war, investors still face uncertainty as a result. In addition, media citing sources reported that the Pentagon is considering sending an additional 10,000 troops to the Middle East.

Iran’s Islamic Revolutionary Guard Corps told state media that the Strait of Hormuz has been closed, adding that any action through this crucial waterway will receive a harsh response. Iranian state media reported that earlier on Friday, a cargo ship flying the Thai flag ran aground after being attacked in the waterway.

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责任编辑：张俊 SF065