Dow Plunges 700 Points as Oil Breaks $100, Stagflation Fears Grow
U.S. stocks plunged to start the week after crude oil broke above $100 a barrel, reigniting concerns that the U.S. economy could slip into a stagflationary setup—rising inflation paired with slowing growth.
The Dow Jones Industrial Average fell 716 points, or 1.5%, coming off its biggest weekly slide in nearly a year. The S&P 500 lost 1.2%, while the Nasdaq Composite declined 1%. The Cboe Volatility Index (VIX)—Wall Street’s fear gauge reflecting demand for options protection—topped 30 for the first time since the tariff-driven selloff in April 2025.
In energy markets, West Texas Intermediate (WTI) crude broke above $100 in overnight trading and briefly surged past $119, marking its first move above the $100 level since 2022, when markets were reacting to the fallout from Russia’s invasion of Ukraine. WTI was last up about 11% near $101 a barrel. Global benchmark Brent also added roughly 11% to around $102 a barrel. For context, U.S. crude began the year below $60 a barrel.
Oil futures jumped after major Middle East producers slashed output amid the continued closure of the Strait of Hormuz, a critical passageway for global energy flows. Kuwait announced production cuts without specifying the size, while Iraq reportedly saw output fall by 70%.
Source : Newsmaker.id
