US stock markets experienced a downturn on July 8, 2026, as ongoing US strikes on Iran and signals from the Federal Reserve about potential interest rate hikes weighed on investor sentiment. The Dow Jones Industrial Average closed down 1.09%, losing approximately 500 points. Meanwhile, the S&P 500 recorded a small loss, and the tech-heavy Nasdaq saw a slight increase.

The market reaction followed a declaration by former President Donald Trump at the NATO summit in Ankara that the Iran-US ceasefire had ended. This announcement triggered a sharp rise in oil prices, with Brent crude, the global benchmark, jumping more than 5% to surpass $80 a barrel.

Global markets also reflected the heightened tensions and economic concerns, with the UK’s FTSE 100 falling 1% and Japan’s Nikkei declining 2.1% earlier in the day.

These developments underscore the interplay between geopolitical events and monetary policy signals in influencing global financial markets.

Sources