Stocks tick lower after Trump vows to hit Iran ‘extremely hard’ in coming weeks
Traders work on the floor of the New York Stock Exchange, March 31, 2026 in New York City. (Spencer Platt/Getty Images)
(NEW YORK) — Stocks ticked lower in volatile trading on Thursday after President Donald Trump delivered a televised address vowing to hit Iran “extremely hard” over the coming weeks.
The Dow Jones Industrial Average fell 75 points, or 0.1%, after opening down by 600 points, while the S&P 500 dropped 0.06%. The tech-heavy Nasdaq declined 0.1%.
Each of the major indexes tumbled more than 1% in early trading, but they quickly recovered most of those losses.
The rollercoaster trading followed losses across Asian and European markets. Tokyo’s Nikkei 225 index slipped 2.3% and the pan-European STOXX 600 fell 0.6%.
Oil prices, meanwhile, surged as traders feared a persistent supply shortage amid the ongoing U.S.-Israeli war with Iran. U.S. oil prices climbed more than 10% on Thursday, registering about $111 a barrel.
Gasoline prices in the U.S. ticked up to $4.08 on average per gallon, marking a leap of $1.09 over the past month, AAA data showed.
Speaking at the White House on Wednesday, Trump voiced mixed messages about his plans for the Middle East conflict. He said Iran is no longer a threat to the U.S. and the war in Iran is “nearing completion.” However, he added, the U.S. plans to continue striking Iran over the next two or three weeks.
“We’re going to bring them back to the stone ages where they belong,” Trump said.
The trading volatility on Thursday interrupted an upswing for markets earlier in the week. On Tuesday, the Dow Jones Industrial Average soared more than 1,100 points, adding another 220 points on Wednesday as traders anticipated Trump may signal an off-ramp from the war in his evening remarks.
Since the war with Iran began on Feb. 28, Trump has issued conflicting signals about the expected duration of the war. On several occasions, stocks have climbed or fallen as markets weighed the implications of Trump’s comments.
The war prompted Iran’s effective closure of the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of the global oil supply.
The vast majority of fuel delivered through the strait is bound for Asia, placing the heaviest pressure on energy supply in that continent. Since oil and gas are sold on a global market, however, the shortage has sent prices rising for just about everyone.
On Wednesday night, Trump urged other countries to take responsibility for reopening the strait.
“The countries of the world that do receive oil through the Hormuz Straight must take care of that passage,” Trump said. “We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on.”
A potential U.S. exit from the war without ensuring that the strait is open could cast uncertainty over the path to a resumption of normal tanker traffic and a remedy for the current global oil shortage.
The all-new 2026 Kia K4 Hatchback is on display during the 2025 Los Angeles Auto Show at the Los Angeles Convention Center on November 21, 2025 in Los Angeles, California. (Josh Lefkowitz/Getty Images)
(NEW YORK) — If you’re looking for a new set of wheels next year, the choices can be overwhelming.
From 3-row SUVs to wagons and futuristic electric vehicles, buyers can select from a wide range of powertrains, prices and body styles.
Which models are already generating excitement in the industry? ABC News spoke to several insiders to get their take on the hottest vehicles headed to showrooms.
Mercedes-Benz CLA and GLB
The German automaker has a busy 2026 schedule planned with the launches of several newly updated models, including the CLA sedan, GLB SUV and the flagship S-Class.
Mercedes’ designers reimagined the interior of the GLB, which can be configured for five or seven passengers. The latest model offers greater comfort: headroom has increased as well as legroom for second-row passengers. A new panoramic roof is standard and owners can opt for a “floating” MBUX Superscreen that extends across the entire dashboard.
Buyers have three powertrains from which to choose. There’s a new 1.5-liter, inline-4 gasoline hybrid, and two electrics: the 250+ (268 horsepower) and 350 4MATIC (349 hp). The GLB can charge up to 260 kilometers (162 miles) of range in 10 minutes, according to Mercedes, and the hybrid version drives in electric-only mode at city speeds.
The latest CLA, available as an electric sedan ($47,250 for the 250+ and $49,800 for the 350 4MATIC) and hybrid, may be even more important for the luxury automaker. The entry-level car packs a ton of tech inside, making it “among the most intelligent vehicles from Mercedes-Benz to date,” according to the automaker.
The same four-cylinder turbocharged engine in the GLB powers the CLA220 hybrid, which is mated to an eight-speed dual-clutch transmission. A large, fixed panoramic glass roof in the CLA helps make the interior feel larger and more spacious. The CLA hybrid will be easy to spot at night: its radiator grille is adorned with the Mercedes‑Benz star pattern in chrome.
The electric CLA can travel 374 miles on a charge, according to Mercedes. Underneath the shell is an 800-volt electrical architecture, which allows the 48-volt lithium-ion battery to recoup roughly 200 miles in 10 minutes. DC fast charging up to 320 kilowatts (kW) is possible, too.
“It’s our vision for an EV to charge like fuel. We’re pushing the limits of what is possible with the CLA. Range anxiety will go away,” according to Markus Schäfer, a Mercedes board member and its chief technology officer.
The marque’s suite of advanced driver assistance systems is also available in the CLA models. Pricing for the GLB and CLA hybrid will be announced in 2026.
Kia K4 Hatchback
The K4 Hatchback, a stylish wagon that debuted in April, starts at $24,890 and will be available for sale in early 2026.
“I am so excited for it,” Robby DeGraff, manager of product and consumer insights at AutoPacific, told ABC News. “Hatchbacks might be making a comeback. It has a humongous cargo area and will be fun to drive. In terms of value, this should be a winner.”
A 2.0-liter engine produces 147 horsepower and 132 lb-ft of torque. For a sportier ride, consumers can choose the GT-Line Turbo model ($28,790); the 1.6-liter, turbocharged engine makes 190 hp and 195 lb-ft of torque.
The K4 Hatchback is also a new design for the Korean automaker and comes equipped with features like a heated steering wheel, Harman Kardon audio system and Digital Key technology that allows an owner’s smartphone to function as virtual key.
Degraff said Kia’s latest iteration of the Telluride SUV, now available with a hybrid powertrain, should also be popular with consumers.
“A hybrid Telluride is long overdue — we will see a big take rate for the hybrid version,” he said. “Losing the V6 [engine] will be a bummer for some people … there are shoppers out there that want a V6 in their 3-row SUVs. But the Telluride will be hit no matter what.”
According to Kia, the turbo hybrid powertrain adds more power and acceleration than the previous model: a combined 329 hp and 339 lb-ft of torque. The driving range is an estimated 600 miles. Kia’s flagship SUV, including the X-Line and X-Pro variants, go on sale in Q1 of 2026 and will be assembled at Kia’s plant in Georgia.
“The Telluride changed what Kia is,” according to Tony Quiroga, editor-in-chief of Car and Driver. “There was a ton of value in the first generation. The new Telluride looks more expensive than it will be and probably start around $40,000.”
“This version gives off a Range Rover vibe,” Quiroga added.
Subaru Outback
Subaru packed a ton of new tech in the latest Outback, including a 12.1-inch high-resolution infotainment screen and advanced driver assistance features. Drivers can now enable a Hands-Free Assist function that works at speeds up to 85 mph on highways.
The automaker is calling the 2026 Outback “the most connected and capable Subaru yet” with the “biggest styling updates in the model’s history.”
DeGraff said the SUV’s updated styling – a new front fascia, larger grille and boxier profile – could be “make or break” for consumers, but the amenities are a “good value” and Subaru still offers “the best all-wheel drive system in the entire industry.”
For Quiroga, the design changes make the Outback look more like a traditional SUV versus a lifted wagon.
“The latest Outback has the refinement and practicality of a wagon but is still very car-like. I see that as a plus,” he said.
The seventh-generation Outback starts at $34,995 for the Premium trim.
Chevy Bolt
The polarizing Chevy Bolt, one of the few affordable EVs to be sold in the U.S, will make its return as a 2027 model, though production will be limited.
The Bolt had both its fans and detractors; the unpretentious crossover won over motorists for its range and simplicity at an appealing price.
The latest trims – the Bolt RS and LT – will start under $30,000 and charge 2.5x faster than the previous model. Owners can expect to get 255 miles of range on a fully charged battery. The Bolt also is the first Chevy to be fitted with a NACS [North American Charging Standard] charging port. Deliveries begin in the first half of 2025.
“We really like the old Bolt, it had a ton of practicality,” said Quiroga. “The upcoming Bolt has a bit more range and a newer battery.”
Added DeGraff: “The 2027 Bolt is a clone of the outgoing one but it has more modern tech. It has all the safety features and Super Cruise. For budget shoppers who want to go electric, the Bolt is a home-run product.”
BMW iX3
The all-new iX3, BMW’s first series-production Neue Klasse model, goes on sale in summer of 2026 and will be a “hugely important vehicle” for the marque, according to Alistair Weaver, editor-in-chief of Edmunds.
The compact sport utility vehicle’s ($60,000) two-box design underwent a dramatic metamorphosis, with the latest iteration taller, longer, wider and more commanding. It also has a range of up to 400 miles, according to BMW. Plus, the company’s 800V architecture could be a game-changer for the industry: BWM said iX3 drivers can add nearly 175 miles of range in less than 10 minutes (it has a maximum charging rate of 400 kW). The vehicle’s dual-motor all-wheel drive powertrain makes 463 hp and 476 lb-ft of torque.
“Most EV owners are happy with 300 miles, but this will do 400, and it can recharge almost twice as fast as a Tesla,” Jared Rosenholtz, editor at large for CarBuzz, told ABC News. “Not only is range anxiety gone, but so is motion sickness. You can not feel the regen braking working in the iX3. It’s the smoothest braking I’ve ever felt in my decade of reviewing cars. All of this will be available for just over $60,000, not $100,000.”
Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on December 10, 2025 in Washington, DC. (Chip Somodevilla/Getty Images)
(NEW YORK) — The Federal Reserve on Wednesday is set to announce its latest decision on the level of interest rates, marking its first rate move since news surfaced of a federal criminal investigation into Fed Chair Jerome Powell.
The investigation ratcheted up an extraordinary clash between the nation’s top central banker and the White House, which has urged the Fed to significantly reduce interest rates.
The central bank is widely expected to defy President Donald Trump’s wishes, opting instead to hold interest rates steady. The anticipated move would end a string of three consecutive quarter-point rate cuts, aligning with a cautious approach outlined by Powell last month, before reports of the investigation into his conduct.
“We’re well positioned to wait and see how the economy evolves,” Powell said at a press conference in Washington, D.C., on Dec. 10.
Futures markets expect two quarter-point interest rate cuts this year, forecasting the first in June and a second in the fall, according to CME FedWatch Tool, a measure of market sentiment.
The federal probe appears to center on Powell’s testimony to Congress last year about cost overruns in a multi-billion-dollar office renovation project. Powell, who was appointed by Trump in 2017, issued a rare video message earlier this month rebuking the investigation as a politically motivated effort to influence the Fed’s interest rate policy.
The investigation follows months of strident criticism leveled at the Fed by Trump. The president denied any involvement in the criminal investigation during a brief interview with NBC News hours after the Fed posted Powell’s video.
Over the past year, hiring has slowed dramatically while inflation has remained elevated, risking an economic double-whammy known as “stagflation.” Those conditions have put the Fed in a difficult position.
The central bank must balance a dual mandate to keep inflation under control and maximize employment. To address pressure on both of its goals, the Fed primarily holds a single tool: interest rates.
The strain on both sides of the Fed’s mandate presents a “challenging situation” for the central bank, Powell noted last month.
“There’s no risk-free path for policy as we navigate this tension between our employment and inflation goals,” Powell said.
If the Fed raises interest rates as a means of protecting against elevated inflation, it risks a deeper slowdown of the labor market. On the other hand, by lowering rates to stimulate hiring, the Fed threatens to boost spending and worsen inflation.
The criminal investigation into Powell raised concern among some analysts and former top Fed officials, who said it poses a threat to central bank independence.
In the event a central bank loses independence, policymakers tend to favor lower interest rates as a means of boosting short-term economic activity, analysts previously told ABC News. Such a posture could pose a major risk of yearslong inflation fueled by a rise in consumer demand, untethered by interest rates.
Federal law allows the president to remove the Fed chair for “cause” — though no precedent exists for such an ouster. Powell’s term as chair is set to expire in May, but he can remain on the Fed’s policymaking board until 2028. Powell has not indicated whether he intends to remain on the board.
U.S. Federal Reserve Chair Jerome Powell. (Li Yuanqing/Xinhua via Getty Images)
(NEW YORK) — An inflation report on Tuesday is set to provide a key gauge of the nation’s economy, just days after reports of a Department of Justice probe into Federal Reserve Chair Jerome Powell brought fresh scrutiny to the independence of the central bank and its capacity to manage price increases.
Economists expect year-over-year inflation to have been left unchanged at 2.7% in December. Inflation stands at its lowest level since July, but it remains nearly a percentage point higher than the Fed’s target rate of 2%, according to the U.S. Bureau of Labor Statistics.
Prices for some high-profile items like coffee and beef continue to soar.
Coffee prices jumped nearly 19% year-over-year in November, the most recent month for which data is available. Beef prices climbed almost 16% over that span. Egg prices plummeted in November, however, falling 13% compared to the previous year.
The onset of elevated inflation alongside sluggish hiring in recent months had put the Fed in a difficult position, even before the DOJ opened a probe into Powell.
The central bank must balance a dual mandate to keep inflation under control and maximize employment. To address pressure on both of its goals, the Fed primarily holds a single tool: interest rates.
The Fed cut interest rates at three consecutive meetings late last year in an effort to boost the flagging labor market. Still, borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.
The criminal probe into Powell appears to center on allegations of false testimony he made about cost overruns in a renovation of the Fed’s headquarters during a congressional hearing in June.
Powell, who was appointed by Trump in 2017, issued a rare video message on Sunday night rebuking the investigation as a politically motivated effort to influence the Fed’s interest rate policy.
A bipartisan group of economists and former top Fed officials on Monday issued a joint statement condemning the probe as an attempt to undermine the Fed’s political independence.
The investigation follows months of strident criticism leveled at the Fed by President Donald Trump, who has urged the central bank to significantly reduce interest rates. Trump denied any involvement in the criminal investigation during a brief interview with NBC News on Sunday night.
In a statement to ABC News, a spokesperson for Attorney General Pam Bondi said, “The Attorney General has instructed her U.S. Attorneys to prioritize investigating any abuse of taxpayer dollars.”
A longstanding norm of independence usually insulates the Fed from direct political interference.
In the event a central bank lacks independence, policymakers tend to favor lower interest rates as a means of boosting short-term economic activity, analysts previously told ABC News. But, they added, that posture poses a major risk in the possibility of years-long inflation fueled by a rise in consumer demand, untethered by interest rates.
Stocks closed higher on Monday, shrugging off a dip earlier in the day after reports of the DOJ probe into Powell.
Treasury yields, however, also ticked up on Monday, suggesting possible concern about the Fed’s ability to constrain inflation.
Since bonds pay a given investor a fixed amount each year, the specter of inflation risks devaluing the asset and, in turn, makes bonds less attractive. When bond prices fall due to a drop in demand for Treasuries, bond yields rise.
