Wall Street Posts Third Week of Declines, Geopolitics Weighs Down Sentiment
US stocks closed a tough week lower, as investors struggled to maintain risk appetite amid escalating regional conflicts and continued high energy market volatility. The S&P 500 fell 0.6%, the Dow Jones Industrial Average fell 0.3%, and the Nasdaq 100 fell 0.7%.
Pressure intensified after US Defense Secretary Pete Hegseth signaled further escalation on Friday by announcing the largest-ever wave of US strikes against Iranian targets. This development was seen as strengthening the blockade of the Strait of Hormuz and fueling concerns that energy supply disruptions could persist for longer, creating a global environment likely to be stagflationary.
This prompted flows into defensive assets, including the US dollar, while pushing major indices toward a potential third straight week of declines. Remaining high energy costs also forced the market to readjust interest rate expectations for 2026, reflecting concerns that inflation could persist longer than previously expected.
In the bond market, yields rose despite weak US fourth-quarter GDP data, increasing pressure on sectors sensitive to funding costs and credit. Rising yields amid weakening growth signals have narrowed the room for equity valuations, particularly in the growth segment.
Technology stocks were the main drag. Adobe plunged 7.6% after missing guidance and news of a CEO change. Shares of Meta, Palantir, and Oracle also fell in the range of 3.8% to 1.7%, confirming that pressure on megacaps and software companies is once again driving the broader market downturn.
Going forward, the market will monitor developments in the conflict and the status of Hormuz as a determinant of energy risk premiums, as well as the direction of US yields, which will influence the reassessment of interest rate expectations and the resilience of risky sectors on Wall Street.
Source: Newsmaker.id
