Market Cracks Widen as War, AI and Credit Fears Collide at Once

As Monday dawned, the mood in financial markets was grim. Oil had suddenly skyrocketed to just shy of $120 a barrel and stock futures were plunging as the war raged in the Middle East. By the end of the day, President Donald Trump had signaled the conflict was nearing an end, oil had retreated to below $90 and the S&P 500 had posted its biggest one-day rally in a month.

And yet even for those relieved by the sudden turnaround, a sobering reality remained: Trump’s decision to attack Iran, no matter what he may now declare, has injected a new and ...