Wall Street Reels as Iran War Shatters Its Portfolio Defenses

Market declines sparked by the Iran war are morphing into a full-blown rout across Wall Street.

Efforts to broker an end to the fighting and restart the flow of Middle East oil produced only further escalation, which in turn fueled an ever-greater sense of dread in markets. The Nasdaq 100 fell 1.9% on Friday alone and sank into correction; the S&P 500 slipped for a fifth week, capping its longest losing streak since 2022; bonds fell, pushing the benchmark 30-year yield towards 5%; and Bitcoin is at about half its pre-war peak.

Selling snowballed in the week’s final ...