Why Is the Stock Market Down Today, 3/5/26?

2026-03-05 20:31:00

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Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down by over 1% on Thursday as rising oil prices boost inflation fears.

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Since the beginning of the U.S.-Iran war, traffic through the Strait of Hormuz has plunged by 95%. Iran claims that the strait is still open for business, although oil and gas tankers have largely avoided the passageway for fear of being targeted.

Higher Energy Prices Threaten GDP

Crude oil (CL) has risen by $13 per barrel over the past week. A common rule of thumb is that inflation will rise 0.1% and gross domestic product (GDP) will fall by a similar amount for every $10 increase in oil, according to Bank of America analyst Meghan Swiber.

Furthermore, the price for a gallon of gas in the U.S. has risen by 26.8 cents over the past week, squeezing consumers at the pump. Higher energy prices could also dent consumer spending and travel, adding another risk to GDP growth.

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