The Nasdaq Composite slid 2% to close at 21,647.6, while the S&P 500 fell 1.5% to 6,506.6. The Dow Jones Industrial Average lost 1% to 45,577.4. Barring financials and energy, all sectors ended in the red, led by utilities' 4.1% slump.
All three Wall Street benchmarks recorded their fourth consecutive weekly losses, with the Dow and the Nasdaq shedding 2.1% each, while the S&P 500 declining 1.9%.
"Equity markets slumped again this week as the conflict in Iran continues to weigh on sentiment and create uncertainty over growth, inflation and interest rates," Robert Kavcic, senior economist at BMO Capital Markets, said in a report. "The other factor weighing on equities is a steady ratcheting higher of bond yields."
The 10-year Treasury yield is up roughly 40 basis points from the late February low, Kavcic said. "In an environment where equity valuations were stretched coming in, this has weighed on the market -- especially when higher rates come alongside weaker growth and margin prospects," he said.
The Federal Reserve left interest rates unchanged earlier this week.
US Treasury yields were sharply higher on Friday, with the 10-year yield up 13.5 basis points at 4.39% and the two-year yield rising 9.7 basis points to 3.9%.
President Donald Trump said Friday he wasn't interested in a ceasefire with Iran, according to a CNBC report.
The US government is mulling plans to occupy or blockade Kharg Island, Iran's main oil export terminal, to mount pressure on Tehran to allow shipments through the Strait of Hormuz, Axios reported Friday, citing sources.
The US is deploying up to 2,500 additional marines and three warships to the Middle East, The Wall Street Journal reported.
Brent was trading 3.1% higher at $111.98 late Friday afternoon, while West Texas Intermediate crude climbed 2.3% to $97.74.
Both oil benchmarks were headed for another weekly gain as heightened tensions in the Middle East triggered fears of a prolonged supply disruption, with analysts pointing to upside risks to crude prices.
Iran continued its strikes on Gulf Arab states even after Israel said it would refrain from targeting Tehran's energy infrastructure again, Bloomberg News reported Friday. Kuwait closed several units at a refinery after multiple strikes, while the United Arab Emirates and Saudi Arabia intercepted missiles and drones overnight and into Friday, according to the report.
Earlier in the week, Iran struck a key liquefied natural gas export facility in Qatar after Israel attacked its South Pars gas field.
"The nature of the energy shock is evolving," Ole Hansen, head of commodity strategy at Saxo Bank, said in a report. "What began as a supply disruption risk centered on the Strait of Hormuz has developed into a more complex and persistent challenge involving damaged infrastructure, disrupted trade flows and with that rising macroeconomic headwinds."
On the monetary policy side, Federal Reserve Governor Christopher Waller said in a CNBC interview that he still sees the opportunity for interest rate cuts later this year.
In company news, Super Micro (SMCI) shares sank 33%. The company said Thursday that it placed two employees on administrative leave and terminated a contractor, following the indictment of all three by US prosecutors for allegedly conspiring to commit export-control violations.
FedEx (FDX) shares rose 0.8%. Late Thursday, FedEx reported a surprise increase in fiscal third-quarter earnings as gains in domestic package volume helped lift revenue above Wall Street's estimates. The beat prompted the company to raise its full-year outlook.
FedEx' strong fiscal third quarter highlights momentum in an uncertain global trade environment, BofA Securities said in a note.
XPeng (XPEV) issued a downbeat first-quarter revenue outlook, although the Chinese electric vehicle manufacturer's sales topped expectations in the previous three-month period. The company's US-listed shares slumped 8.4%.
Gold was last down 2% at $4,512.30 per troy ounce, while silver lost 4.2% to $68.24 per ounce.
http://www.mtnewswires.com
Copyright © 2026 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.