Stock Market Today, July 8: Stocks Slide and Dow Drops 1.5% as Middle East Tensions Spike

U.S.-Iran tensions sparked a broad selloff on July 8, 2026, with the Dow Jones Industrial Average dropping 1.51%, the S&P 500 down 0.91%, and the Nasdaq off 0.92%. The geopolitical flare-up sent crude oil surging 7.85%, marking one of the sharpest single-day gains in months and creating a split market as energy stocks rallied while technology shares lagged.

The oil spike reflected immediate supply concerns tied to Middle East instability, pushing West Texas Intermediate and Brent crude sharply higher. Energy sector equities captured the upside from the commodity move, outperforming the broader market as traders priced in potential production or shipping disruptions. Gold, typically a safe-haven during geopolitical stress, bucked expectations and fell 1.87% as Treasury yields climbed, suggesting investors prioritized nominal yield over precious metal hedges in this episode.

The divergence between major indices was modest—less than 70 basis points separated the Dow's decline from the Nasdaq's—but the sector rotation was pronounced, with tech names absorbing disproportionate selling pressure.