Dow closes down 450 points as Iran war sends oil prices surging
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City. (Photo by Spencer Platt/Getty Images)
(NEW YORK) — The Dow Jones Industrial Average closed down 450 points on Friday as the Iran war continued to spike oil prices.
The Dow fell 453 points, or 0.9%, while the S&P 500 dropped 1.3%. The tech-heavy Nasdaq declined 1.5%.
In a post on social media on Friday morning, President Donald Trump appeared to rule out a compromise with Iran.
Trump said there would be “no deal with Iran except UNCONDITIONAL SURRENDER!”
Oil prices soared as traders feared a prolonged blockade of the Strait of Hormuz, a trading route that facilitates the transport of about one-fifth of the global oil supply.
U.S. crude oil prices topped $90 on Friday, marking a staggering 35% increase from a week earlier.
The stock selloff on Friday extended losses from a day earlier, when the Dow closed down 785 points.
Alongside fallout from the Middle East conflict, a jobs report on Friday showed the U.S. economy unexpectedly lost jobs in February, marking a reversal of fortunes for the labor market.
The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.
The Iran war threatens to slow U.S. economic growth since oil-driven price increases could weigh on consumers and businesses, analysts previously told ABC News.
The potential combination of higher inflation and slower growth could also pose a challenge for the Fed, putting pressure on both sides of its dual mandate to manage prices and maintain maximum employment.
The central bank held interest rates steady at its most recent meeting in January, ending a string of three consecutive quarter-point rate cuts.
Mark Zuckerberg (R), CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC. (Anna Moneymaker/Getty Images)
(WASHINGTON) — Mark Zuckerberg is set to testify Wednesday in a landmark Los Angeles trial alleging that major social media platforms were intentionally designed to be addictive for children and teens.
The case, which began last Monday in Los Angeles County Superior Court, centers on claims against Meta — the parent company of Facebook and Instagram — and YouTube, which is owned by Google. Plaintiffs argue the companies knowingly built features that encouraged compulsive use among young users, contributing to long-term mental health harm.
The lawsuit was brought by a now-20-year-old woman identified as “Kaley” and her mother, who allege she was exposed to addictive design features as a child. Her lawyers claim she got hooked on social media apps starting as young as age 6. She says features like auto-scrolling got her addicted to the platforms — ultimately leading to anxiety, depression and body image issues.
In opening statements, the plaintiffs’ attorney Mark Lanier told the jury the case was “as easy as ABC,” which he said stood for “addicting the brains of children.”
The case is the first of more than 1,500 similar lawsuits nationwide to go before a jury, potentially setting a precedent for how tech companies are held liable for product design.
Zuckerberg has appeared before Congress multiple times to address concerns over youth safety and online harms, but Wednesday marks the first time he will testify before a jury on these claims. Legal experts say a verdict in favor of the plaintiff could weaken the broad liability protections tech companies have long relied on under Section 230 of the 1996 Communications Decency Act, which shields platforms from responsibility for user-generated content.(cut)
Several parents of children who died by suicide or accidental harm linked to online trends are expected to attend the proceedings. Some previously watched Zuckerberg apologize during a 2024 Capitol Hill hearing, where he acknowledged families who said social media contributed to their children’s deaths.
The companies deny the allegations, arguing that mental health outcomes are shaped by a range of factors beyond social media use. They say they have implemented safeguards aimed at protecting young users, including parental controls and accounts designed specifically for teens.
In a statement to ABC News at the start of the trial, a Meta spokesperson said, “We strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people.”
Meta said that the company has made “meaningful changes” to its services, such as introducing accounts specifically for teenage users.
Zuckerberg’s appearance follows testimony last week from Instagram head Adam Mosseri, who disputed characterizing Instagram use as an “addiction,” while acknowledging what he described as “problematic use.”
Mosseri testified that there’s always a tradeoff between “safety and speech,” saying users don’t like it when they remove options from Instagram.
The Los Angeles trial is part of a broader wave of litigation targeting social media companies. Meta is also facing a separate child safety lawsuit in New Mexico, while lawsuits brought by school districts — modeled after tobacco litigation in the 1990s — are expected to head to trial later this year.
Social platforms Snapchat and TikTok were previously named in the lawsuit but reached settlements with the plaintiffs last month.
Traders work on the floor of the New York Stock Exchange during morning trading on February 24, 2026 in New York City. (Michael M. Santiago/Getty Images)
(NEW YORK) — The Dow Jones Industrial Average plunged 900 points on Thursday as the war with Iran escalated and oil prices continued to climb.
The Dow fell 908 points, or 1.8%, while S&P 500 dropped 1%. The tech-heavy Nasdaq declined 0.9%.
This is a developing story. Please check back for updates.
(NEW YORK) — A thaw in the housing market may deliver relief for homebuyers left out in the cold over recent years, analysts told ABC News.
After the pandemic, a rapid rise in home prices coincided with stubbornly high mortgage rates, shutting out potential buyers.
Glimmers of hope have started to emerge, however. Mortgage rates are falling, wages are rising faster than home prices and homebuyers are scooping up their biggest discounts in years, some analysts told ABC News.
“Housing is becoming more affordable. Are we there yet? No. But we’re on the right path,” Ken Johnson, a real estate economist at the University of Mississippi, told ABC News.
The average interest rate on a 30-year fixed mortgage stands at 6.09%, Freddie Mac data last week showed. A little more than a year ago, the average 30-year fixed mortgage rate exceeded 7%.
Each percentage point decrease in a mortgage rate can save thousands or tens of thousands in additional costs each year, depending on the price of the house, according to Rocket Mortgage.
“It looks like mortgage rates are settling down,” Lawrence Yun, chief economist at the National Association of Realtors (NAR), told ABC News. “That’s great news for homebuyers.”
A measure of housing affordability issued by NAR has improved for seven consecutive months, rising to its highest level since 2022, Yun said. The surge in home prices has slowed while income gains have accelerated, bolstering the purchasing power of homebuyers, some analysts noted.
“Incomes are growing faster than home prices,” Johnson said.
Despite these positive signals, the housing market still faces significant challenges, some analysts said, pointing to a fundamental shortage of housing supply.
The housing market is suffering from a phenomenon known as the “lock-in” effect, Lu Liu, a professor at the Wharton School at the University of Pennsylvania, told ABC News.
While mortgage rates have fallen, they remain well above the rates enjoyed by most current homeowners, who may be reluctant to put their homes on the market and risk a much higher rate on their next mortgage.
“The degree of lock-in is unprecedented in the U.S.,” Liu said, noting the prevalence of 30-year mortgages and the inability for homeowners to transfer a current loan to a new property.
Existing home sales declined by 8.4% in January from the previous month, the NAR said in a report last week.
Alongside the lock-in effect, construction has failed to make up for a years-long shortage of new homes, exacerbating the shortfall.
While the lock-in effect remains a significant factor, its impact may be waning as some home owners encounter major life events or other circumstances that force them to move, even if it entails taking on a loan with a higher mortgage rate, Liu said.
“If they really do have to move, maybe they would be more willing to yield to this economic logic,” Liu added.
If homebuyers do move forward with a purchase, they may benefit from major price discounts, Redfin found this month. In 2025, homebuyers received average discounts that amount to 7.9% off a home’s initial listing price, Redfin said, making it the largest average discount in 13 years.
“Homebuyers are more likely to get discounts than they were in recent years because it’s the strongest buyer’s market in recent history,” said Lily Katz and Asad Khan, co-authors of the Redfin report.
Positive signals for homebuyers will likely continue as elevated mortgage rates weigh on consumer demand, slowing the rise in prices, some analysts said. But, they cautioned, an unexpected spike in mortgage rates could hike borrowing costs for homebuyers or an economic slowdown may crimp purchasing power.
“There is uncertainty over the outlook for interest rates,” Liu said. “So the overall price outlook is uncertain.”
