Market Roundup: What Happened Yesterday and What Awaits Us Today (February 20)

Wall Street declines as oil prices surge and tensions escalate between Washington and Tehran

U.S. stocks declined on Thursday, snapping a three-day winning streak for both the Dow Jones Industrial Average and the S&P 500, as oil prices climbed to six-month highs amid escalating tensions between the United States and Iran.

The Dow Jones Industrial Average led losses, falling 0.5%, while the S&P 500 dropped 0.3%. The Nasdaq Composite also declined by roughly 0.3%, following a prior session that had seen a modest recovery in technology stocks.

On the corporate front, Walmart shares slipped 1.5% despite reporting strong quarterly sales growth, suggesting investors may be more concerned about forward guidance than recent performance. Carvana shares fell sharply, dropping 8% after the online used-car retailer missed key profitability expectations.

In contrast, DoorDash gained 1.5% after forecasting stronger user spending in the current quarter, helping offset otherwise modest earnings results.

Technology stocks delivered mixed performance. Apple fell more than 1%, while Nvidia, Alphabet, and Microsoft posted slight declines. Meanwhile, Amazon, Meta, Broadcom, and Tesla recorded modest gains. Markets also reacted to reports that OpenAI may be nearing a $100 billion funding round, with significant planned investment in computing infrastructure.

In commodities, oil surged to its highest level since August as the United States strengthened its military presence in the Middle East amid ongoing nuclear negotiations with Iran. West Texas Intermediate crude rose about 2% to $66.55 per barrel. Gold edged up 0.2% to $5,015 an ounce, while silver gained 0.7% to $78.20.

Bond markets were relatively stable, with the yield on the 10-year U.S. Treasury note easing slightly to 4.07% from 4.08% the previous day. Bitcoin traded near $67,000 after briefly dipping below $66,000, while the U.S. dollar index ticked up 0.1% to 97.80.

Market Outlook

Markets are expected to remain sensitive to geopolitical developments, particularly U.S.–Iran tensions, as well as oil price volatility and its potential inflationary impact. Investors will also be watching upcoming economic data closely, as it could influence monetary policy expectations at a time when overall risk appetite appears to be softening.