US stock indices retreated on Friday as bond yields climbed amid roiling energy markets.
The intensifying conflict in the Middle East has triggered widespread liquidations in both equities and bonds, driven by fears that surging energy prices will fuel inflation and stifle global economic growth.
As of 10 a.m. Eastern Time, the S&P 500 fell 0.7%, the Dow Jones Industrial Average was down 0.3%, and the Nasdaq Composite was 1.2% lower.
At the open, the Dow Jones Industrial Average fell 45.8 points, or 0.10%, to 45,975.65. The S&P 500 fell 11.8 points, or 0.18%, to 6,594.66, while the Nasdaq Composite dropped 101.4 points, or 0.46%, to 21,989.333.
The yield on the 10-year Treasury jumped to 4.35% from 4.25% late on Thursday, while the US dollar strengthened, recovering its losses from earlier in the week.
Although Brent crude’s rapid ascent moderated slightly on Friday, prices remain nearly 50% higher than at the war’s onset.
Financial markets remain on edge as Iran continues to strike regional targets, despite Israel’s recent indications that it would avoid hitting the Islamic Republic’s core energy facilities.
Key Stock Movers
Shares of Super Micro Computer sank 27% after the US government accused a senior vice president of the company and two others affiliated with it of conspiring to smuggle billions of dollars of computer servers containing advanced Nvidia chips to China.
FedEx stock surged 2.1% after the delivery giant reported stronger quarterly profit than analysts expected.
Amazon stock slipped over 1% after Reuters reported that the company introduced its first smartphone in an attempt to take on Apple and Samsung.
Stocks of Halliburton rose marginally and Cheniere Energy added more than 1%.
Bullion Market
Gold prices gained on Friday amid concerns about inflationary risks spurred by the Middle East turmoil.
As of 9:01 a.m. ET (1301 GMT), spot gold rose 0.6% to $4,674.29 per ounce. US gold futures for April delivery added 1.5% to $4,675.20.
Among other metals, spot silver fell 1.1% to $72.08. Platinum rose 0.5% at $1,981.53 and palladium added 0.4% to $1,450.84.