Rising oil prices and renewed concerns about a potential escalation of the U.S.-Iran conflict weighed heavily on U.S. stocks on Friday, as a broad sell-off spread far beyond technology shares. Market data reported by CNBC indicated that the Dow Jones Industrial Average fell 549 points, or 1%, reflecting widespread caution across major trading sectors.
While the Dow suffered significant losses, the rest of the major stock indexes showed mixed performance. The S&P 500 declined 0.2%, whereas the Nasdaq Composite managed to eke out a slight gain of nearly 0.3%. Energy markets captured the primary focus of investors as crude benchmarks climbed past critical technical and psychological thresholds.
Oil Surpasses $100 a Barrel Amid Conflict Concerns
West Texas Intermediate (WTI) crude futures rose 1.4% to reach $100.90 per barrel, crossing the notable $100 threshold for the session. Simultaneously, Brent crude advanced 0.75% to settle at $114 per barrel. The upward pressure on oil prices was driven by investor assessments of mounting geopolitical risks and the threat of renewed military action involving Iran.
Market anxieties intensified following reports that the United States and Israel may be preparing plans for additional attacks on Iran. This regional war, which initially began in late February, continues to disrupt global supply expectations and spark fears of prolonged shipping constraints through vital trade corridors.
Selling Spreads Beyond Technology Shares
Friday’s market downturn marked a wider dispersion of selling following a notable pullback in technology stocks earlier in the week. Financial and industrial heavyweights saw marked declines. American Express shares fell 3.7% after the company announced plans to cut roughly 5% of its global workforce, while industrial giant Caterpillar edged down 2%.
Defensive sectors were not spared from the pressure. Consumer staples, utilities, and healthcare stocks traded lower across the board, with pharmaceutical maker Merck down 2% and biotechnology firm Moderna dropping approximately 4%. In contrast, Big Tech names experienced mixed results: Microsoft and Meta traded lower, whereas select chip stocks like Micron Technology and Advanced Micro Devices rebounded slightly, ticking up more than 1%.
Volatility Index and Treasury Yields Climb
Reflecting heightened nervousness on Wall Street, the Cboe Market Volatility Index (VIX) climbed another 6% to reach 20.24. This followed a sharp 14% jump to 19.03 on Thursday, putting the volatility gauge on track to close above the crucial 20 threshold for the first time since early June.
Meanwhile, U.S. Treasury yields ticked upward after falling sharply during Thursday’s session, when investors had rushed into government bonds as a safe haven. The 10-year Treasury yield added 1 basis point to reach 4.9697%, while the 2-year yield slipped 2 basis points. For the trading week as a whole, the Dow tracked toward a 1.7% advance, the S&P 500 held a minimal gain of less than 0.1%, and the Nasdaq recorded a 0.5% weekly loss.
