The Dow Jones Industrial Average fell more than 500 points on Friday as the sell-off in tech spread to other sectors and U.S. oil topped $100 a barrel. The move came amid rising fears that the U.S.-Iran conflict would flare up again, while the Nasdaq edged higher.
The Dow tumbled 549 points, or 1%, on Friday, while the S&P 500 slipped 0.2% and the Nasdaq gained nearly 0.3%. U.S. oil prices climbed above $100 a barrel amid rising fears that the conflict with Iran would flare up again.
Oil added to the pressure on stocks. West Texas Intermediate futures rose 1.4% to $100.90 per barrel, and Brent crude gained 0.75% to $114, following reports that the U.S. and Israel may be drawing up plans for renewed attacks on Iran.
Selling spreads beyond technology
The sell-off widened on Friday after a pullback in technology stocks on Thursday. American Express fell 3.7% after announcing it was cutting about 5% of its global workforce, and Caterpillar edged down 2%. The consumer staples, utilities and healthcare sectors also traded lower, with Moderna down around 4% and Merck down 2%.
Big Tech shares such as Microsoft and Meta traded lower, but chip stocks rebounded slightly. Micron Technology and Advanced Micro Devices ticked up more than 1%.
Volatility and yields climb
The Cboe Market Volatility Index, known as the VIX, climbed another 6% to 20.24 after jumping 14% on Thursday to 19.03. The gauge is on track to close above 20 for the first time since early June.
Treasury yields edged up after falling sharply on Thursday, when investors looked to U.S. government bonds as a safe haven. The 10-year yield added 1 basis point to 4.9697%, while the 2-year yield fell 2 basis points.
For the week, the Dow is tracking for a 1.7% advance, the S&P 500 is up less than 0.1%, and the Nasdaq is down 0.5%.
Source: CNBC
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