U.S. stocks fell sharply again after Thursday’s selloff, putting the Dow Jones Industrial Average in correction territory, or more than 10% off its February high.
The S&P 500 meanwhile is on track for its worst monthly performance since 2022.
The latest declines come as the Trump administration suggests it is gearing up for a longer confrontation in the Middle East. Trump has given Iran a 10-day extension, until April 6, to reopen the Strait of Hormuz to commercial shipping or face strikes on the country’s energy infrastructure. The Pentagon is also weighing sending additional 10,000 ground troops and armored vehicles.
The Dow Jones Industrial Average slid 793 points, or 1.7%, to 45167. The Nasdaq Composite Index, which fell into a correction Thursday, dropped 2.1% . The S&P 500 closed lower for its fifth straight week, its longest weekly losing streak in nearly four years.
Oil prices meanwhile resumed their climb, with front-month Brent futures closing 4% higher at $112.57 a barrel and U.S. crude rising to $99.64. Treasury yields were mixed and the dollar edged higher. Gold rose 2.7%, after dropping in 10 of the past 12 sessions.
While the Trump admistration weighed more military options. Iran turned back two China-owned container vessels from the Strait of Hormuz, and Israel mounted a broad attack that it said targeted Iran’s weapons facilities.
Write to Caitlin McCabe at caitlin.mccabe@wsj.com