FX.co ★ US Stock Indices Drop to 4-Month Lows

US stocks fell to a four‑month low on Friday as surging energy prices, driven by war in the Middle East, reinforced fears of stagflation. The Nasdaq 100 declined 0.7%, the S&P 500 lost 0.4%, and the Dow edged slightly lower. Oil and LNG prices stayed elevated following attacks on energy infrastructure, including Qatar’s largest gas field and key refineries in Kuwait, alongside reports that the US is considering taking control of Iranian oil export facilities on Kharg Island. These developments added to the pro‑inflation backdrop and extended the rise in Treasury yields that began after a hotter‑than‑expected PPI report and hawkish projections from selected FOMC members earlier in the week. Supermicro sank 25% after its CEO was charged with smuggling Nvidia chips to China. By contrast, FedEx rose 10% on strong guidance. Banks also moved higher on expectations of forthcoming regulation that would ease capital requirements, particularly for smaller and mid‑sized lenders.