Wall Street experienced mixed trading activity, with the S&P 500 remaining largely unchanged while the Dow Jones Industrial Average edged up 167 points, or 0.3%. The Nasdaq declined 0.6%, pressured by significant losses in major technology stocks including Micron Technology, which fell 7.5%, and Nvidia, which dropped 1.1%. Both the Nasdaq and Dow are tracking toward weekly losses, marking the second consecutive losing week for the broader market, a pattern not seen since March.
Oil prices retreated after rising throughout the week, with Brent crude falling 4.2% to $96.51 per barrel. The decline came as geopolitical tensions in the Middle East intensified, with escalating conflict between the U.S. and Iran threatening supply chains through critical waterways. Strategic petroleum reserves that provided market cushioning earlier in the year have been substantially depleted, leaving the energy market with reduced capacity to absorb further disruptions. Before the Iran conflict began in late February, crude had been trading around $72 per barrel.
Bond yields provided some relief to equity markets, with the 10-year Treasury yield falling to 4.68% from 4.71%. The U.S. also implemented a fresh round of tariffs affecting dozens of nations and nearly all imports, with costs typically passed to consumers by importing companies. This action followed the expiration deadline for temporary levies implemented after a Supreme Court setback on earlier tariff policies.
Economic pressures mounted as rising energy costs and new tariffs threaten to elevate inflation, a concern closely monitored by the Federal Reserve ahead of its meeting later this month. Market expectations point to a potential rate increase by year-end, with approximately 36% probability of action at the upcoming meeting. Gasoline prices nationally averaged $4.10 per gallon according to AAA, approaching levels seen during spring conflict escalation but nearly a dollar above year-prior levels. Investors expressed concerns about profit sustainability as companies navigate higher operating costs, with American Express declining 4.9% despite reporting higher quarterly profits, and questions persisting about whether significant technology sector investments will justify current valuations.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI