Wall Street Ends Lower, Posts Weekly Loss Amid Inflation Fears Sparked by Tensions with Iran
US Stocks End Down as Oil Prices Volatility Weighs on Equities
US stocks closed lower on Friday, capping a week marked by erratic crude oil prices that have been affecting investor sentiment due to the ongoing war in Iran.
The Dow Jones Industrial Average fell 119.38 points (0.26%) to 46,558.47, while the S&P 500 lost 40.43 points (0.61%) to 6,632.19. The Nasdaq Composite declined 206.62 points (0.93%) to 22,105.36.
The Russell 2000, a small-cap index, ended at its lowest close of the year so far.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Crude Oil Prices fluctuated before closing higher, with front-month WTI crude futures settling at $98.71 per barrel, up 3.11% on the day, and Brent rising 2.67% to $103.14, above $100 per barrel for the first time since August 2022.
The ongoing conflict in Iran has dimmed hopes of de-escalation and near-term resolution, with US President Donald Trump vowing to hit Iran "very hard over the next week." The International Energy Agency has warned that the war will cause the largest-ever disruption in global crude supply.
Despite softer economic data, including a sharp downward revision to fourth-quarter GDP growth, the US Federal Reserve is expected to leave its key interest rate unchanged at the conclusion of next week's monetary policy meeting. With the threat of spiking oil prices further stoking inflation, the odds of a near-term rate cut are dwindling.
The S&P 500 financial sector fell 3.4% on the week, amid mounting concerns over credit quality. Technology shares posted the biggest percentage loss, while utilities enjoyed the largest percentage gain.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Key Statistics
- Volume on US exchanges: 18.12 billion shares (compared to the 19.84 billion average for the full session over the last 20 trading days)
- New highs on the NYSE: 71
- New lows on the NYSE: 185
- New highs on the Nasdaq: 1,714
- New lows on the Nasdaq: 2,966
Investor Takeaway
Investors should be cautious of market volatility driven by emotional responses to global events.
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