Why are the S&P 500, Nasdaq, and the Dow crashing today?

Today, the S&P 500 has so far crashed by 0.9%, the Nasdaq Composite dropped by 1.8%, while the Dow Jones Industrial Average tumbled by a modest 0.2%.

The biggest reason came from tech, where the iShares Semiconductor ETF slid by nearly 6% after it had rallied by 6% just yesterday, though it did crash 10% on Friday, which was its worst day in six years.

Micron’s stock fell more than 6% after its 10% rebound on Monday, with the stock still reeling from a two-day drop of about 20% last week, including a 13% selloff on Friday. Broadcom also gave back part of Monday’s bounce, falling more than 4% after a similarly sharp two-day slide last week.

Stocks had opened with better support after oil prices fell on hopes that tensions in the Middle East could ease. West Texas Intermediate crude futures dropped 5% to around $86 a barrel, falling back under $90, after U.S. Energy Secretary Chris Wright said traffic through the Strait of Hormuz is “rising very meaningfully.” President Donald Trump also said a U.S.-Iran deal could come in “two or three days” and reopen the Strait of Hormuz “immediately.”

The lower oil move still helped parts of the market. Energy stocks in the S&P 500 fell 2%, but materials and consumer discretionary led the index, while real estate gained support from better-than-expected existing home sales data. Information technology was the weak spot, dropping nearly 4%.

Bitcoin also returned above $60,000 after falling below that level on Friday for the first time since October 2024. The world’s largest cryptocurrency has lost about 27% in 2026 and is now roughly 50% below its all-time high.

Even with that damage, the iShares Bitcoin Trust ETF (IBIT) ranked among the 20 most popular tickers in the options market by volume, while Strategy and Coinbase accounted for two of the 15 biggest options trades by dollar amount on Monday.