Dow Drops as Inflation Hits Highest Level Since 2024; Nasdaq Climbs Amid Mixed Market Signals
April 10, 2026 — The Dow Jones Industrial Average closed lower on Friday, ending a week of strong gains on a cautious note after the latest inflation figures revealed the highest increase in nearly two years. The March Consumer Price Index (CPI) report showed a 0.9% rise from the previous month and a 3.3% increase compared to March 2025, marking the largest annual price jump since May 2024. The unexpected inflation reading triggered a mixed reaction on Wall Street. The Dow declined approximately 0.6%, or 269 points, reflecting investor concerns over rising costs. In contrast, the tech-heavy Nasdaq Composite gained 0.4%, while the broader S&P 500 edged down 0.1%. Despite the volatility on Friday, U.S. stock benchmarks posted significant weekly advances, with most indexes gaining 3% or more—representing their strongest weekly performance since November of last year.
Gasoline prices accounted for nearly three-quarters of the monthly inflation increase, continuing to exert upward pressure on consumer expenses. Food inflation, meanwhile, showed signs of easing, and the overall CPI results aligned closely with economists’ projections. Bond yields edged upward in response to the inflation data, reflecting investors’ anticipation of potential monetary policy adjustments.
Consumer sentiment took a notable hit in April, dropping to the lowest point on record according to the University of Michigan survey. Americans’ concerns over the ongoing conflict involving Iran have weighed heavily on economic outlooks at the household level, signaling increased anxiety about the conflict’s potential effects on the U.S. economy.
In energy markets, U.S. oil prices fell 1.3% on Friday to $96.57 per barrel amid easing supply concerns. Over the course of the week, oil prices plunged 13%, marking their steepest weekly decline since 2020. The decline comes as traders remain alert to developments in the Middle East, with the U.S. and Iran scheduled for talks in Islamabad on Saturday. However, Iranian officials have indicated their participation may depend on the situation in Lebanon, adding uncertainty to the diplomatic process.
On the global front, European stock markets ended the week on a positive trajectory, largely mirroring gains across Asian indices. Meanwhile, the WSJ Dollar Index experienced a slight decline, while Treasury yields in the U.S. moved higher in response to the inflationary pressures.
Looking ahead, investors will continue to monitor updates from the Middle East closely and track potential implications for inflation and economic stability. For ongoing coverage, readers can consult the Wall Street Journal’s weekly markets roundup and the WSJ Minute Briefing podcast, in addition to live updates on Middle East developments.
— By Caitlin McCabe, The Wall Street Journal