Wall Street closed sharply lower on Friday, pulled down by concerns over the Iran conflict. Investor sentiment was clearly risk-off and bearish, with markets sliding into correction territory on geopolitical tensions, surging oil prices and rising inflation fears. All three benchmark indexes ended in the red and at their lowest levels in over seven months.
The Dow Jones Industrial Average (DJI) fell 1.7%, or 793.47 points, to close at 45,166.64. Twenty-four components of the 30-stock index ended in negative territory, while six ended in the positive.
The tech-heavy Nasdaq Composite lost 459.72 points, or 2.2%, to close at 20,948.36.
The S&P 500 fell 108.31 points, or 1.7%, to close at 6,368.85. Eight of the 11 broad sectors of the benchmark index closed in the red. The Consumer Discretionary Select Sector SPDR (XLY), the Financials Select Sector SPDR (XLF) and the Communication Services Select Sector SPDR (XLC) declined 3.1%, 2.5%, 2.3% respectively, while the Energy Select Sector SPDR (XLE) advanced 1.9%.
The fear gauge CBOE Volatility Index (VIX) increased 13.2% to 31.05. A total of 18.1 billion shares were traded on Friday, lower than the last 20-session average of 20.4 billion. Decliners outnumbered advancers by a 3.38-to-1 ratio on the NYSE and by a 3.62-to-1 ratio on the Nasdaq Composite.
Wall Street ended Friday sharply lower as intensifying developments in the Iran conflict rattled global markets and eroded investor confidence. Continued military exchanges in the region, along with threats to oil supply routes such as the Strait of Hormuz, fueled fears of prolonged disruption. Crude prices surged amid concerns over supply constraints, amplifying inflation worries and adding pressure on already fragile market sentiment. Reports of expanding regional involvement and limited diplomatic progress further deepened uncertainty.
Investors found little reassurance in remarks from President Trump suggesting a potential resolution within 10 days, with markets largely dismissing the statement as overly optimistic. Sentiment remained firmly risk-off and bearish, triggering broad-based selling across sectors. All three major benchmark indexes closed in the red, slipping to their lowest levels in over seven months, underscoring how geopolitical risks and energy shocks continue to dominate the near-term outlook for global equities. Tech, discretionaries and financials were the worst-hit.
Consequently, shares of Amazon.com, Inc. AMZN and JPMorgan Chase & Co. JPM plunged 4% and 3%, respectively. While AMZN carries a Zacks Rank #3 (Hold), JPM has a #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Friday, the Dow Jones Industrial Average confirmed a move into correction territory, defined as a decline of at least 10% from recent highs, as the prolonged Middle East conflict dampened investor sentiment. The Dow closed more than 10% from its Feb. 10 record close, and follows the Nasdaq in going into the correction zone.
The three U.S. benchmark stock indexes declined for a fifth consecutive week as escalating Middle East tensions, surging oil prices, persistent inflation fears and interest rate uncertainty continued to weigh on investor sentiment. The tech-focused Nasdaq fell 3.2%, the S&P 500 and Dow lost 3.2%, 2.1% and 0.9%, respectively.
The University of Michigan Consumer Sentiment report was out on Friday, and the March number came in at a much lower than expected 53.3. The number for February remained unrevised at 56.6.
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