US equities ended a difficult week lower, with the S&P 500 down 0.6%, the Dow off 0.3%, and the Nasdaq 100 losing 0.7%, as markets struggled to find footing amid escalating regional conflict and persistent volatility in energy prices. Defense Secretary Pete Hegseth signaled a further escalation on Friday, announcing the largest wave of US strikes against Iranian targets and effectively cementing the blockade of the Strait of Hormuz, heightening fears of a prolonged, stagflationary global backdrop.
The mounting geopolitical and energy-related risks drove investors into the dollar and pushed major equity benchmarks toward a third consecutive week of losses, while elevated energy costs forced markets to reprice interest-rate expectations for 2026. Yields moved higher despite soft Q4 GDP data, putting significant pressure on credit-sensitive sectors. Software heavyweights led the decline: Adobe sank 7.6% following weaker-than-expected guidance and the announcement of its CEO’s departure, while Meta, Palantir, and Oracle fell between 3.8% and 1.7%.
