New York — U.S. financial markets tumbled Friday as the ongoing war with Iran sent shockwaves through stocks, bonds, and commodities. The Dow dropped 444 points (0.96%), the S&P 500 fell 1.51%, and the Nasdaq slumped 2.01%, with the Russell 2000 entering correction territory, down 10.3% from its January peak.
Investors are increasingly unsettled by rising energy prices, inflation concerns, and uncertainty over the conflict’s duration, all of which are complicating central banks’ policy outlook. The VIX, Wall Street’s fear gauge, surged 11% as the Nasdaq dipped close to correction territory.
US Treasury yields spiked, with the 10-year hitting 4.39%, the highest since July, reflecting investor concerns over inflation and interest rates. Global markets followed suit: London’s FTSE 100 fell 1.44%, and the UK 10-year bond yield rose above 4.9%, its highest since 2008.
Gold suffered its worst week since 1983, sliding more than 10%, while Brent crude rose 3.26% to $112.19 per barrel, its highest close since July 2022. U.S. crude also climbed 2.27% to $98.32 per barrel.
“The market may not have yet found its bottom and is still pricing in the duration of the Middle East conflict and oil price outlook,” said David Laut, chief investment officer at Kerux Financial. The Dow and S&P 500 both recorded their longest consecutive weekly losing streaks in years, underscoring mounting investor anxiety as geopolitical tensions continue.#newsafro_
