Why Dow stock fell 10% on Friday

Dow Inc. shares plunged about 10% on Friday even as the broader market rallied, with chemical and energy names among the worst performers after news that the Strait of Hormuz was open raised hopes of a ceasefire and eased immediate geopolitical risk. Peer chemical stocks LyondellBasell and CF Industries dropped roughly 12% and 9% respectively. Analysts say the reopening should partially relieve supply shocks, but constrained Middle East production — particularly reduced LNG feedstock for ethylene and propylene — means chemical and plastics prices may stay elevated. Polyethylene prices have risen about 24% since the conflict began, and plastics account for over half of Dow’s business, amplifying the revenue impact. Market takeaway: sector-specific supply dynamics and persistent feedstock outages are weighing on chemical names, producing a bearish near-term outlook for affected producers even amid broader equity strength.