The Dow Jones Industrial Average has turned negative for 2026, dropping 0.2% year-to-date as the US-Iran conflict roils energy markets and investor sentiment. The index fell 1.6% on Thursday as energy prices soared, with Goldman Sachs, Caterpillar, and Walmart among the biggest decliners.

President Trump had previously touted the Dow's climb above 50,000 as evidence of his economic policies' success, even predicting it would reach 100,000 by 2029. However, the average has dropped 4.3% since then, falling below 50,000 amid concerns over AI disruption, private credit, and Middle East tensions. The price-weighted index's structure means it's more vulnerable to energy price shocks than the tech-heavy S&P 500.

The conflict's impact extends beyond the Dow, with the S&P 500 also falling 0.6% and turning negative for the year. Crude oil prices topped $81 as investors priced in a protracted US-Iran war, creating inflation concerns that could spread to other market sectors if energy prices continue rising.