Oil Above $110 Triggers Global Sell-Off; Nasdaq, DAX Slide as Inflation Fears Surge

– Global markets turned sharply risk-off as an energy shock reignited inflation concerns following the Federal Reserve’s decision to hold rates steady at 3.5%–3.75% after hotter-than-expected PPI data. In the U.S., the Nasdaq Composite dropped 1.46% to 22,152, with all “Magnificent Seven” tech stocks under pressure as rising energy costs threaten margins and growth expectations.
– European markets followed suit, with Germany’s DAX falling 0.96% to 23,502, snapping a two-day winning streak and marking its sharpest decline since mid-March amid the broader global pullback.
– In Asia, the Nikkei 225 showed extreme volatility—after surging 2.73% to 55,168 on strong export data, it reversed sharply, opening down around 2.6% in the latest session as Wall Street weakness and inflation fears spilled over.
– Energy markets remain the core driver of volatility. Brent Crude Oil surged above $108–$110 per barrel after military strikes hit key Middle Eastern energy infrastructure, including Iran’s South Pars gas field and LNG facilities in Qatar. The situation is exacerbated by the effective closure of the Strait of Hormuz, disrupting global supply flows. In response, the White House temporarily waived the Jones Act to ease domestic oil transportation, highlighting the severity of the supply shock.