Wall Street Corrects, Oil Surge Raises Risk-Off Pressure
US stocks weakened on Thursday (March 5) as the market took a breather after the previous session's gains, while surging oil prices rekindled inflation concerns and dampened risk appetite. The S&P 500 fell 0.4% along with the Nasdaq Composite, while the Dow Jones Industrial Average fell 398 points, or 0.8%.
The main pressure came from energy. US crude oil rose to its highest level since June 2025 after Iran said it had hit an oil tanker with a missile. WTI futures jumped about 4% to trade above US$77 per barrel, while Brent rose more than 3% to above US$83 per barrel.
Thursday's weakness contrasted with Wednesday's session, when stocks rallied on the back of a rally in large-cap technology and semiconductor companies. The Dow snapped a three-day downtrend, while the S&P 500 and Nasdaq posted solid gains.
On the geopolitical front, concerns about oil and gas supply disruptions eased after President Donald Trump said the US was prepared to provide risk insurance and escorts for ships in the Persian Gulf to help ensure traffic continues to flow through the Strait of Hormuz. However, uncertainty remains high as the White House has not provided a timeframe for when the passage will be safe for tankers again.
With oil prices rising sharply again, the market is now sensitive to two main channels: the risk of energy inflation, which could dampen expectations of interest rate easing, and the potential for supply disruptions, which could prolong volatility in risk assets.
Source: Newsmaker.id
