US Stocks Slip, Head for Fourth Straight Weekly Loss as Iran War Drags On
US equities fell on Friday as investors continued to track the ongoing Iran war, leaving major indexes on pace for a fourth consecutive weekly decline.
The Dow Jones Industrial Average dropped 239 points, or 0.5%. The S&P 500 fell 0.8%, while the Nasdaq Composite slid 1.2%.
The risk-off tone followed overnight strikes exchanged between Iran and Israel, with Iran also launching fresh attacks on energy sites in the Persian Gulf region. The Wall Street Journal reported, citing US officials, that the Pentagon is sending thousands of additional Marines to the Middle East.
Markets’ main transmission channel is energy risk. Any escalation that threatens infrastructure or shipping routes can keep a geopolitical risk premium embedded in oil prices, pushing up broader energy costs and complicating the inflation and rate outlook. That combination typically weighs on equities, particularly rate-sensitive segments, as investors reassess growth and policy expectations.
Baird investment strategist Ross Mayfield said that if the conflict escalates into troop deployments on the ground, markets may face several more weeks of elevated oil and gasoline prices, with sentiment swinging on headlines tied to regional energy infrastructure. He added that equities have not yet sold off in a way that fully reflects the scale of the event, leaving room for further downside.
On the political front, President Donald Trump renewed his criticism of NATO, calling it a “paper tiger” without US support. In a Truth Social post, Trump also linked high oil prices to the Strait of Hormuz, arguing that others complain about being forced to pay higher prices but do not want to help keep the passage open.
Investors will continue to monitor developments around regional strikes, the security of energy facilities and shipping lanes, the Strait of Hormuz, and the trajectory of oil and energy prices as key inputs for risk sentiment.
Source : Newsmaker.id
