Tech Stocks Drop as Oil Rises on Iran War Risks: Markets Wrap
(Bloomberg) — Wall Street traders drove stocks lower ahead of the weekend on concern that a protracted war in Iran will keep oil prices elevated, fueling a simultaneous increase in inflation and a slowdown in growth.
The nearly 1% drop in the S&P 500 put the gauge on course for its longest streak of weekly losses since 2022. The Nasdaq 100 fell into correction territory after a 10% decline from its peak. Brent hovered around $111. A drop in Treasuries stalled after yields hit the highest levels of the year.
The US and Israel bombed several nuclear targets and steel facilities in Iran on Friday, as Tehran continued to launch strikes across the Persian Gulf and rebuffed President Donald Trump’s increasingly insistent demands to end the conflict.
The attacks came after Trump pushed back his deadline for Iran to agree to reopen the Strait of Hormuz or face strikes on its power plants.
“Even though the move might temporarily avoid escalation of the war between the US and Iran, it has prolonged the uncertainty around the length of the disruption to global oil supply,” said Ian Lyngen at BMO Capital Markets. “Reports that the US is sending additional ground troops to the Middle East have added to fears of escalation.”
The Wall Street Journal reported the Pentagon is considering sending as many as 10,000 additional soldiers to the Middle East. Iran’s government believes there’s a high likelihood the US will attempt to take over Kharg Island, according to an official from the Islamic Republic.
“The logic of ‘escalation to de-escalate’ continues to play out, and this will dampen risk appetites ahead of the weekend,” said Marc Chandler at Bannockburn.
The diplomatic dissonance between the US and Iran has dismayed investors, and risk appetite could not withstand the “fog of war,” according to Doug Beath at Wells Fargo Investment Institute.
“Despite this week’s volatility, we still expect that the time pressure on the US will be a major factor in the war’s ultimate duration,” he said.
As the war in the Middle East drives up gasoline prices, data showed US consumer sentiment slid to a three-month low in March and year-ahead inflation expectations jumped.
Economists raised their estimates for US inflation through year-end, while trimming consumer spending, growth and employment projections as the war in Iran drives up fuel costs, according to the latest Bloomberg monthly survey.
“The combination of inflation and recent strong labor data leaves the Federal Reserve with no justification to cut rates, which, in turn, strengthens the US dollar and causes widespread volatility in equities, bonds, and gold,” said Craig Johnson at Piper Sandler.
Corporate Highlights:
Carnival Corp. cut its full-year profit outlook as surging crude prices are driving up fuel costs. Anthropic PBC is considering going public as soon as in October, according to people familiar with the matter, as the artificial intelligence company races with rival OpenAI Inc. to hold an initial public offering. Oaktree Capital Management is meeting all redemption requests it received for a $7.7 billion private credit fund aimed at retail investors, siding with managers that have decided against enforcing a cap on withdrawals. Pernod Ricard SA and Brown-Forman Corp., the owner of Jack Daniel’s whiskey, are discussing a merger as the alcoholic drink companies look at ways to consolidate amid an industry downturn. What Bloomberg Strategists say…
“Treasury yields are close to entering a precarious zone for stocks, and it will be harder to shrug the move off this time.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 fell 1% as of 1 p.m. New York time The Nasdaq 100 fell 1.3% The Dow Jones Industrial Average fell 1.1% The Stoxx Europe 600 fell 1% The MSCI World Index fell 1% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro was little changed at $1.1519 The British pound fell 0.4% to $1.3276 The Japanese yen fell 0.2% to 160.14 per dollar Cryptocurrencies
Bitcoin fell 4.4% to $65,923.1 Ether fell 3.8% to $1,985.4 Bonds
The yield on 10-year Treasuries was little changed at 4.41% Germany’s 10-year yield advanced two basis points to 3.09% Britain’s 10-year yield was little changed at 4.97% The yield on 2-year Treasuries declined seven basis points to 3.92% Commodities
West Texas Intermediate crude rose 4.7% to $98.90 a barrel Spot gold rose 3.2% to $4,514.43 an ounce ©2026 Bloomberg L.P.
