Highlights
Stocks tumbled Friday to cap their fifth straight weekly decline, the longest losing streak since 2022, as incidents in the Strait of Hormuz exacerbated energy supply fears and stagflation concerns intensified. The Dow plunged 1.7 percent, the S&P 500 lost 1.7 percent to a seven-month low, and the Nasdaq dropped 2.2 percent. The May Brent crude oil futures contract rose 5.6 percent to $114 per barrel while WTI May futures rose 6.4 percent to more than $100 per barrel. Bond yields climbed, with the 10-year Treasury reaching 4.43 percent. Gold edged higher and the dollar firmed.
After the market close yesterday, President Trump extended by 10 days his deadline for strikes on Iranian energy infrastructure to April 6, posting on Truth Social that talks were"going very well." But the market took little comfort, as Iran turned back two China-owned container vessels from the Strait of Hormuz and the Pentagon reportedly weighed sending up to 10,000 additional troops to the region. Consumer sentiment slid further, with the University of Michigan reading falling to 53.3 as inflation expectations rose.
Tech stocks led the decline, with 11 of the bottom 20 in the Nasdaq coming from the sector. Notable losers were Arm Holdings, down 6.9 percent and Amazon, down 4 percent. Meta continued its slide, down roughly 12 percent since Wednesday on layoffs and the social media addiction verdict. JP Morgan and Visa dropped 3 percent on credit concerns. Energy remained the lone bright spot, with Exxon up 3.4 percent.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.