NEW YORK, New York - A broad-based sell-off engulfed Wall Street on Thursday, with all three major U.S. averages posting steep losses as investors grappled with hotter-than-expected producer price data and renewed concerns about consumer spending. The downturn extended a volatile week for U.S. equities, erasing gains from earlier sessions.

"Iran's strategy of sowing economic chaos in the Gulf is working as tankers come under attack and Hormuz stays shuttered, pushing Brent up toward $100," Adam Crisafulli of Vital Knowledge sid in a note. to clients Thursday "The U.S. and Israel have military dominance and Iran's missile/nuclear programs may be degraded, but Tehran's hardline [government] is firmly entrenched, and it's plan now seems to be leveraging oil to push Trump further down an off-ramp," he said.

The Dow Jones Industrial Average bore the brunt of the selling in terms of points, tumbling 739.42 points to close at 46,677.85. The blue-chip index fell by 1.56 percent, dragged down by weakness in industrial and financial components as traders repositioned portfolios ahead of next week's Federal Reserve policy meeting.

The sell-off was even more pronounced in the tech-heavy space. The NASDAQ Composite plunged 404.15 points, settling at 22,311.98. The index lost 1.78 percent as megacap technology names came under pressure following a bearish analyst note on semiconductor demand. Trading volume on the NASDAQ was heavy, with more than 6.6 billion shares changing hands.

The broader market fared little better. The S&P 500 dropped 103.18 points to finish at 6,672.62, a decline of 1.52 percent. The benchmark index touched a low of 6,670.40 during the session, with all 11 major sectors closing in negative territory. Consumer discretionary and communication services led the declines.

The selling was fueled in part by the latest Producer Price Index (PPI) data, which showed wholesale inflation running hotter than economists had forecast, dampening hopes for an imminent shift in monetary policy.

Thursday, March 12, 2026: North American Index Closing Snapshot

"If energy costs and gasoline prices remain at current levels or rise for a period due to developments in the Middle East, it may weigh on consumer sentiment and push affordability issues to the forefront as we get closer to the midterm elections," Anthony Saglimbene, chief market strategist at Ameriprise told CNBC Thursday.

"That said, overall consumer balance sheets remain in solid condition, income and employment conditions are currently sound, and inflation continues to ease in important pockets, namely shelter," Seglimbene said. "Over time, if inflation continues to ease (outside of temporary energy impacts) and markets and the economy hold on firm footing, Americans' attitudes about their ability to afford everyday life could improve."

U.S. Dollar Dominates Rivals as Yen Defies Trend; Loonie Gains on Oil

The U.S. dollar demonstrated broad strength against major peers on Thursday as geopolitical concerns raged due to the volatile state of the Middle East, triggered by the unprovoked U.S. - Israel invasion of Iran.

The euro softened as the European Central Bank signaled a potential pause in its tightening cycle. The Euro / US dollar pair fell by 0.43 percent to settle at 1.1516, retreating from earlier session highs as traders digested weak manufacturing data out of Germany.

The British pound also struggled against the greenback. Sterling dropped 0.48 percent to trade at 1.3346, pressured by comments from a Bank of England official suggesting that inflation may cool faster than previously anticipated, reducing the need for aggressive rate hikes.

The US dollar / Japanese yen pair climbed 0.24 percent to 159.33.

Commodity-linked currencies faced significant headwinds. The Australian dollar tumbled 0.99 percent against the greenback to 0.7079, its lowest level in two weeks, following weaker-than-expected employment data. The New Zealand dollar fared little better, plunging 0.98 percent to 0.5855 as falling dairy prices weighed on the kiwi.

The US dollar / Canadian dollar pair edged up 0.25 percent to 1.3626. The loonie's losses were limited by a surge in crude oil prices, which climbed on heightened geopolitical risks affecting major shipping lanes.

Swiss franc weakness was pronounced .. The US dollar / Swiss franc pair rallied sharply, gaining 0.71 percent to trade at 0.7854, as the safe-haven franc failed to attract bids despite the risk-off mood in global equities.

Thursday, March 12, 2026: Foreign Exchange Closing Snapshot

Global Stock Markets Sink Thursday as Middle East Tensions Escalate

A wave of selling pressure swept across global stock markets on Thursday, driven by escalating geopolitical tensions in the Middle East and a surge in crude oil prices. Major indices in Europe, Asia, and the United States closed firmly in negative territory as investors fled to safety.

Canadian markets finished sharply lower. The S&P/TSX Composite Index fell 279.23 points to close at 32,840.60, a loss of 0.84 percent. Losses in technology and financial stocks were partially offset by strength in energy shares, as rising crude oil prices provided support to Canada's heavyweight energy sector. Trading volume on the TSX was solid, with 317 million shares traded.

In London, the FTSE 100 fell by 48.62 points, or 0.47 percent, to settle at 10,305.15. The decline was fueled by growing fears of a prolonged conflict after Iran's new leadership made aggressive statements regarding the vital Strait of Hormuz . The index touched a low of 10,258.43 during the session.

The pan-European sell-off was broad-based. Germany's DAX index closed at 23,589.65, down 50.38 points, a loss of 0.21 percent. France's CAC 40 saw a steeper decline, dropping 57.37 points, or 0.71 percent, to finish at 7,984.44, pressured by losses in the financial and industrial sectors . The broader EURO STOXX 50 I index also fell, losing 45.79 points (0.79 percent) to end at 5,748.89. Other major European indices followed suit, with the Euronext 100 down 0.52 percent and Belgium's BEL 20 losing 0.54 percent.

Asian markets were not spared from the risk-off sentiment. Hong Kong's HANG SENG INDEX dropped 182.00 points, closing at 25,716.76, a decline of 0.70 percent . In Australia, the losses were more pronounced, with the S&P/ASX 200 tumbling 114.50 points (1.31 percent) to 8,629.00, while the broader ALL ORDINARIES fell 125.40 points (1.40 percent) to 8,851.40.

India's S&P BSE SENSEX was a significant decliner, crashing 829.29 points to close at 76,034.42, a loss of 1.08 percent amid continued selling by foreign institutional investors . Japan's Nikkei 225 also suffered, sliding 572.41 points, or 1.04 percent, to end at 54,452.96. Similarly, South Korea's KOSPI and Taiwan's TWSE dropped 0.48 percent and 1.56 percent, respectively.

Other notable decliners on the day included the Top 40 USD Net TRI Index in South Africa, which fell sharply by 2.12 percent, and the EGX 30 in Egypt, which lost 0.86 percent.

In a rare bright spot, Malaysia's FTSE Bursa Malaysia KLCI managed to buck the trend, edging up 2.23 points to close at 1,711.01, a gain of 0.13 percent.

Thursday, March 12, 2026: Global Stocks Index Closing Snapshot

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

Related stories:

Wednesday 11 March 2026 | Dow Jones dives 289 points as oil prices surge | Big News Network.com

Tuesday 10 March 2026 | U.S. stock markets waver as Iran war keeps traders on edge | Big News Network.com 

Monday 9 March 2026 | Dow Jones jumps 235 points as American stocks rebound  | Big News Network.com