Nasdaq and S&P 500 drop to six-month lows on Friday
US stocks hit six-month lows as Middle East tensions drive oil prices higher. Tech shares fell while investors weighed the impact on future Fed rate cuts.
The United States stock market faced significant downward pressure on Friday, as the S&P 500 and Nasdaq Composite plummeted to their lowest levels in more than six months. This decline was primarily driven by escalating geopolitical tensions in the Middle East, which have severely dampened investor appetite for risk.
The conflict intensified as the administration issued a stern warning to Iran, providing a 10-day window to reopen the Strait of Hormuz. Failure to comply could result in the destruction of energy infrastructure, a move following the rejection of peace proposals previously coordinated with Israel. This geopolitical friction has pushed oil prices up by more than 2%, heightening fears of persistent inflation and complicating the path for future interest rate adjustments.
