US equity indices extended their decline on Friday, closing at seven-month lows as the war in the Middle East and mounting risks of trade disruption intensified stagflation fears. President Trump maintained a pause on strikes against Iranian energy infrastructure, but explosions in the region disrupted tanker traffic through the Strait of Hormuz. The resulting surge in energy prices had already dampened expectations for a Fed rate cut this year, and concerns deepened further after China launched a trade investigation into the US in retaliation for Washington’s tariffs.
Tech heavyweights fell sharply as investors scaled back risk exposure, undermining confidence in speculative AI-related positions. Tesla, Amazon, and Oracle each lost more than 3%, while a deteriorating credit outlook pushed JPMorgan and Visa down by a similar margin. Meta has dropped 12% since Wednesday amid layoffs and a court ruling that deemed its social media platforms addictive.
