Key Takeaways
- Major indices closed lower on Friday, with the Nasdaq declining 1% and extending its correction
- Crude oil rallied more than 2%, pushing Brent crude above $103 per barrel amid ongoing Middle East tensions
- President Trump pushed back his Iran strike deadline to April 6, adding 10 days to the original timeframe
- The S&P 500 headed toward its fifth consecutive weekly loss, marking the longest slide since spring 2022
- Volatility surged with the VIX climbing to approximately 30, indicating heightened market uncertainty
Major US equity indices experienced another challenging session on Friday as crude oil rallied and market participants remained skeptical about a swift resolution to Middle East tensions.
The Nasdaq Composite shed 1%, deepening its correction phase. The Dow Jones Industrial Average declined approximately 500 points, representing a 1.1% loss. The S&P 500 decreased nearly 1%.
The S&P 500 appeared headed for its fifth consecutive weekly decline. Such an extended losing streak would represent the longest since spring 2022.
Oil emerged as a primary catalyst behind the market weakness. Brent crude pushed above $103 per barrel. West Texas Intermediate surpassed $97. Both benchmarks advanced more than 2% during the trading session.
The energy rally persisted even after President Trump announced an extension to his Iran deadline. His original ultimatum threatened strikes on Iran’s energy facilities if negotiations failed by Friday. Late Thursday evening, he postponed that deadline to April 6 following Iran’s request.
Traders interpreted the extension with caution rather than optimism. Concerns mounted that the delay merely allows elevated oil prices additional time to burden economic growth worldwide.
“We’re seeing futures drift lower throughout the morning as traders follow their new daily routine of getting up, brushing their teeth, and clicking ‘Sell,'” remarked Paul Hickey, co-founder of Bespoke Investment Group.
Traffic through the Strait of Hormuz remains suspended due to ongoing conflict, creating additional strain on energy markets. Iran has continued to reject American diplomatic overtures.
Volatility Gauge Climbs
The CBOE Volatility Index advanced 2.6 points to reach approximately 30, a threshold that suggests traders anticipate turbulent market conditions ahead.
Hickey observed that the Nasdaq appears destined for its 10th weekly decline in the past 11 weeks. He emphasized that such persistent downward momentum has occurred during only a handful of periods throughout the index’s entire existence.
Consumer sentiment figures published Friday revealed increasing pessimism among American households.
Treasury yields displayed mixed movement throughout the day. Ten-year yields reached an eight-month peak earlier in the week, with certain analysts suggesting bond market stress might motivate Trump to pursue conflict resolution more aggressively.
Shutdown Legislation Advances in Senate
The Senate approved legislation early Friday morning to maintain funding for TSA and other Department of Homeland Security functions, although ICE funding remained excluded. The vote represents progress toward resolving a partial federal shutdown that has created airport disruptions and sparked economic concerns.
Gold encountered additional downward pressure from central bank reserve liquidations, based on Friday morning market intelligence.
By midday Friday, the Dow had dropped over 500 points, the S&P 500 had declined approximately 1%, and the Nasdaq had fallen 1.3%.
