Dow Sheds 577 Points as Iran Ceasefire Collapses and Rate Hike Odds Hit 85%

U.S. markets fell sharply as expectations for Federal Reserve rate hikes jumped to 85% after President Donald Trump said the Iran interim ceasefire was effectively over. Oil surged more than 7% over two sessions, offsetting any traditional “safe-haven” effect as Treasuries sold off at the same time. The Dow Jones Industrial Average dropped 576.76 points, or 1.1%, to close at 52,348.39, and the S&P 500 fell 0.28% to 7,482.71, while the Russell 2000 declined 0.9%. The Nasdaq was the only major gauge to rise, up 0.2% to 25,870.65, helped by a semiconductor rebound. The shift occurred shortly after Trump spoke at the NATO summit in Ankara, Turkey, and came alongside CENTCOM confirmation of a second consecutive night of strikes against Iranian targets, following earlier actions linked to attacks on commercial vessels in the Strait of Hormuz.