Two things investors hate more than anything: surprises and uncertainty. On July 29, 2026, they got a generous helping of both.
The Dow Jones Industrial Average shed roughly 800 points in morning trading, a decline of approximately 1.5% to 1.7%, as a combination of geopolitical alarm and pre-Fed nerves sent traders scrambling for the exits. The S&P 500 and Nasdaq fell in tandem, with semiconductor stocks absorbing particularly sharp losses.
The catalyst, at least the immediate one, was a threat of military strikes against Iran issued by President Trump. Oil markets reacted instantly, sending energy prices sharply higher.
When oil spikes, everything else gets complicated
Energy stocks were the clear outlier on the day, moving higher as the rest of the market sold off. That divergence is textbook risk-off behavior: money rotates away from growth and tech into commodities and defensive names.
