Shares of commodity chemical producer Dow have had a rough time lately. There might be further to go before investors can step back in.
Dow stock fell 2% on Tuesday to $27.36, its 11th consecutive drop. The S&P 500 rose 0.4%. Tuesday's close was the lowest since Jan. 29, 2026, when shares closed at $27.16, according to Dow Jones Market Data.
Dow stock has dropped for 12 of the past 13 days, and it's the worst 11-day stretch for the stock since Aug. 2025. Shares are down more than 60% from their all-time closing high of almost $71 a share, reached in May 2021.
That's a lot of bad news.
Recent trading means all the positive momentum gained by the Iran war is now gone. Shares were above $30 just before the U.S. attacked Iran. They traded to about $42 in late March.
Commodity chemicals are produced worldwide from oil and natural gas. Higher oil prices gave companies using natural gas, such as Dow and LyondellBasell, an advantage. What's more, a lot of chemicals are made in the Middle East, and some of that capacity was knocked offline.
Now, international benchmark oil prices are roughly where they were before the war, at about $73 a barrel. What's more, U.S. natural gas prices are up a little since the end of February, when fighting began.
The prospect of higher interest rates threatens to slow economic growth, hitting demand for commodities.
It's been a perfect storm on the way up, and then on the way down, for Dow's stock. If it's any consolation for Dow investors, Lyondell stock looks very similar.
Where the bottom is for both is anyone's guess. The pair were upgraded about a dozen times after the war began. Analysts might start rethinking their ratings.
That can put additional pressure on the stocks. Dow shares have technical support at $26, according to Barron's senior technical analyst Doug Busch. If they can hold that level, it could be a bottom. (Dow stock was at that level early in 2026.) Lyondell needs to hold $50.
Technical analysts use market history and charts to gauge where investors might buy or sell a stock. When shares have been down for two consecutive weeks, technical insights can be helpful.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 30, 2026 16:20 ET (20:20 GMT)
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