- The war in the Middle East is having a negative impact on the US stock market, with technology stocks suffering the biggest losses.
- Main indices – S&P 500, NYSE Composite, The Dow Jones Industrial Average ended the week in the red.
On Friday, US stock markets extended their fourth week of decline, with all major indexes ending trading in the red. Nasdaq Composite closed at 21,647, down 443,08 points, while the index Dow Jones Industrial Average closed at 45,577, down 443,96 points.
The S&P 500, which measures the 500 largest publicly traded U.S. companies, closed at 6506,48, down 100,01 points, its fourth consecutive weekly decline and its lowest level since September 2025. The NYSE Composite Index closed at 21,616, down 324,30 points, reflecting broad weakness across all sectors.
Perplexity Data
Small-cap stocks bore the brunt of the blow, with the index Russell 2000 fell by approximately 2,3% and entered correction territory. This was due to the ongoing conflict between the US and Israel with Iran, which has disrupted key oil and liquefied natural gas shipping routes.
Oil prices approached multi-year highs, fueling inflation concerns. Consequently, the Treasury Department lifted sanctions on approximately 140 million barrels of Iranian oil already loaded onto ships. However, markets reacted cautiously to this development.
This lack of confidence is already being felt in interest rate markets. Treasury yields have risen, and traders have lowered expectations for the US Federal Reserve’s monetary easing, allowing for the possibility of renewed tightening. Tech stocks have deepened their decline.
The S&P 500’s break below its 200-day moving average added another layer of concern. For the first time in more than 200 sessions, the index fell below a widely followed technical level, which many institutional investors view as a change in trend.
However, such declines don’t always indicate long-term problems. Data from recent decades shows that stocks often recover within 12 months, albeit unevenly. However, this time the situation is less favorable. Inflation driven by rising energy prices, rising bond yields, and the war in the Middle East are limiting the market’s ability to quickly stabilize.
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