The S&P 500 fell 1.5%, the Nasdaq 100 slid 1.8% to a six-month low, and the Dow Jones Industrial Average declined 0.8% to a four-month low on Friday, as escalating conflict in the Middle East and surging energy prices rattled markets. The selloff pushed the major indexes into correction territory, with West Texas Intermediate crude futures extending gains after reports that Iraq had declared force majeure across all oilfields.
Risk sentiment deteriorated further as the Pentagon moved to deploy additional Marines to the region, while the Federal Reserve earlier in the week left its benchmark interest rate unchanged in a range of 3.50% to 3.75%.
In corporate moves, Micron Technology dropped 4.8%, and Super Micro Computer sank 33.3% as it remained under heavy pressure following chip-smuggling allegations against its CEO. On the upside, FedEx gained 1% on the back of strong guidance, and energy major Exxon Mobil rose 1% amid the rally in crude prices.
