FILE PHOTO: A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 13, 2026. REUTERS/Brendan McDermid/File Photo

Dow confirms correction as traders worry about war

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March 27 : The Dow Jones Industrial Average fell 1.7 per cent on Friday as investors worried about the global economic impact of the war in Iran, leaving the blue-chip index down 10 per cent from its record high close on February 10 and confirming it has been in a correction since then. 

In a broad Wall Street selloff fueled by uncertainty about the U.S. and Israeli war with Iran, the Dow in recent days has suffered its worst decline since April 2025, when U.S. President Donald Trump's "Liberation Day" global tariff announcement sent global markets into a tailspin.

On Thursday, the tech-heavy Nasdaq confirmed it has been in a correction since its record high close on October 29. The S&P 500 is down about 9 per cent from its record high close on January 27.

While investment funds are generally not benchmarked to the Dow, the price-weighted index of 30 companies is well known among Main Street investors and its steep decline reflects a broad deterioration of investor sentiment.

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With the selloff driven by fears the Middle East conflict will cripple the global economy, investors are weighing whether the downturn is a temporary dip, similar to the recovery that followed the 2025 selloff, or the start of a sustained period of risk tied to the war.

Global financial markets have tumbled and oil prices have surged since the U.S. and Israel launched a war against Iran on February 28. The Dow has lost over 7 per cent since the attacks began. Sky-high oil prices have sparked fears of inflation, with traders expecting the Federal Reserve to be more likely to raise interest rates by year-end than cut rates, according to CME's FedWatch tool.

A 2.4 per cent decline in Goldman Sachs Group weighed more on the Dow on Friday than any other stock.

Source: Reuters

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