S&P 500 Drops 4.3% in Q1 2026 Amid Iran-US Conflict Resilience, Oil Hits $116/Barrel

The S&P 500 fell 4.3% in Q1 2026, just 6% below its January all-time high, buoyed by 13.2% year-over-year earnings growth forecast per FactSet. Despite the Iran-US conflict closing the Strait of Hormuz and driving WTI crude to $116 per barrel, US stocks have outperformed internationals since escalation. The strengthening US dollar acted as a safe haven, capping S&P 500 quarterly losses at 2.5%.