Stock Market Today: Dow and S&P 500 Slide as Oil and Gas Futures Surge on Iran War Risk

U.S. stocks opened sharply lower Tuesday with the Dow Jones Industrial Average and S&P 500 extending losses from yesterday's Iran conflict rout, as investors grapple with spiking energy costs and fears of broader Middle East escalation. The Dow shed over 300 points early while the S&P 500 dropped 1.50% to around 6,881, reflecting a clear risk-off rotation away from equities amid uncertainty over Iran's response to U.S. strikes and the Strait of Hormuz partial closure. Oil and gas prices are dominating the session. WTI crude futures climbed above 75 USD per barrel: a 6% intraday jump, while Brent pushed toward 80 USD as traders price in sustained supply risks from the Gulf chokepoint that handles 20% of global flows. Natural gas futures also rallied 4% on fears of LNG disruptions, with European benchmarks spiking harder as Asia reroutes imports.​ Dow Jones Under Pressure: Energy Up, Tech Down The Dow Jones fell 0.65% in pre-market action, led lower by rate-sensitive names like Sherwin-Williams and Nike alongside tech heavyweights amid higher Treasury yields now piercing 4%. Chevron stands out as a rare gainer up 1.5%, underscoring the flight to energy within the blue-chip index. Overall volume is elevated but skewed toward defensive positioning, with prediction markets showing even odds on further Dow downside by close. S&P 500 Sinks 1.5%: Sector Rotation Accelerates The S&P 500's 1.50% plunge to 6,778 marks a second straight session of war-driven selling, with airlines, consumer discretionary and semiconductors pacing losses while energy (+3%) and defense names rally. SPY ETF flows confirm heavy put buying as hedges against a potential 5-10% correction if oil breaks 85 USD. Yesterday's close saw the index off 0.12% at 48,921, but today's gap lower signals mounting recession fears tied to $4+ gas prices. Oil, Gas Futures Signal Bigger Storm Ahead Crude's rally reflects analysts' worst-case scenarios: a prolonged Hormuz blockade could send WTI to 100 USD, per Eurasia Group models, hammering consumer spending and corporate margins. Gas futures point to pump prices nearing 3.50 USD nationally by week's end, up from 2.98 USD last week. Defense stocks like Lockheed Martin hold gains above 670 USD, but broader indices face tests at Dow 48,500 and S&P 6,700 support.​ Traders eye de-escalation headlines for relief, but for now, stock market today trades like every tick in oil spells fresh downside for the Dow Jones and S&P 500.