Major U.S. stock indices continued their decline on Friday, with the Dow Jones Industrial Average falling 10% from its record high set on February 10, confirming it has entered a correction phase. A spokesperson for the Iranian armed forces stated on the 27th that Iran is formulating the conditions for ending the war. The spokesperson warned the U.S. and Israel that Iran possesses significant strength and advantages on the battlefield, enabling it to determine the final outcome, and that the U.S. and Israel would be "compelled" to accept this reality. The spokesperson noted that the U.S. and Israel are fully aware of the capabilities of Iran's armed forces and its people in practical struggles, advising them to face the facts and return to rationality promptly.
For the week, all three major indices recorded their fifth consecutive weekly decline. The S&P 500 fell more than 2.1%, marking its longest weekly losing streak since 2022. The Nasdaq Composite dropped over 3.2% for the week, while the blue-chip Dow Jones Industrial Average declined 0.9%.
At market close, the Dow Jones Industrial Average was down 792.67 points, or 1.72%, to 45,167.44. The Nasdaq Composite fell 459.72 points, or 2.15%, to 20,948.36. The S&P 500 dropped 108.31 points, or 1.67%, to 6,368.85.
Most leading technology stocks declined. Meta Platforms and Amazon each fell nearly 4%. Tesla dropped 2.76%, while NVIDIA declined over 2%. The Nasdaq Golden Dragon China Index closed down 1.9%. NIO fell more than 4%, and Alibaba dropped over 2%.
In European markets, Germany's DAX 30 index fell 282.30 points, or 1.25%, to 22,298.77. The UK's FTSE 100 index declined 3.98 points, or 0.04%, to 9,968.19. France's CAC 40 index dropped 67.36 points, or 0.87%, to 7,701.95. The Euro Stoxx 50 index was down 59.77 points, or 1.07%, to 5,506.16. Spain's IBEX 35 index fell 154.43 points, or 0.91%, to 16,808.47. Italy's FTSE MIB index decreased 334.34 points, or 0.77%, to 43,367.50.
In cryptocurrencies, Bitcoin fell over 4% to $66,032.09. Ethereum declined over 3.9% to $1,985.69.
U.S. crude oil prices briefly touched an intraday high of $100.04 per barrel on Friday before pulling back slightly. West Texas Intermediate crude futures settled up 5.46% at $99.64 per barrel. The international benchmark, Brent crude futures for May delivery, were last up 4.05% at $112.38 per barrel.
Spot gold rose 2.62% to $4,495.55. Spot silver increased 2.45% to $69.764.
The U.S. Secretary of State stated that military operations against Iran are expected to last another two to four weeks, and achieving objectives does not require deploying ground forces. Speaking at the G7 foreign ministers' meeting in France on the 27th, Secretary Rubio said the military action is anticipated to conclude in a timely manner, suggesting a timeframe of "weeks, not months." According to a reporter from Axios posting on social media, Rubio told the meeting the conflict would continue for "2 to 4 weeks," and the U.S. could still achieve its military objectives in Iran without sending ground troops.
The UN Secretary-General has established a dedicated task force regarding the situation in the Strait of Hormuz. A spokesperson stated that as the Middle East conflict persists and risks further escalation, disruptions to maritime trade through the Strait could trigger chain reactions in the coming months, impacting humanitarian needs and agricultural production. While the Secretary-General is committed to doing everything possible to achieve a comprehensive and lasting resolution, immediate action to mitigate these consequences is crucial. To address these challenges, the Secretary-General has formed a specialized task force.
U.S. consumer confidence declined, while short-term inflation expectations edged higher. According to Joanne Hsu, Director of the University of Michigan Surveys of Consumers, the Consumer Sentiment Index fell 6% in March to its lowest level since December 2025. Sentiment declined among consumers across all age groups and political affiliations. The drop was particularly pronounced among middle-to-high-income consumers and those with stock holdings, affected by rising gasoline prices and turbulent financial markets following the Iran conflict. Overall, the short-term economic outlook fell 14%, and expectations for personal finances over the next year dropped 10%, while longer-term expectations saw a more moderate decline. These patterns suggest consumers may currently believe recent negative developments will not persist long. However, these views could change if the Iran conflict is prolonged or if energy price increases translate into broader inflation. Furthermore, one-year inflation expectations rose to 3.8% this month from 3.4% in February, representing the largest single-month increase since April 2025. The current reading exceeds 2024 levels and remains well above the 2.3%-3.0% range observed in the two years prior to the pandemic. Long-term inflation expectations, however, edged down slightly to 3.2%.
Oracle's five-year credit default swap (CDS) spreads touched their highest level since the financial crisis, serving as a key indicator for AI-related credit risk. Data from ICE Data Services showed that the cost to protect against a default on Oracle's debt for five years widened by 0.079 percentage points (7.9 basis points) during intraday trading to 198.58 basis points. A close at this level would set a new record high, surpassing the previous peak from December 2008. As major tech giants borrow heavily to build AI infrastructure, Oracle has become a crucial barometer for Wall Street to gauge AI-related credit risk. John Lloyd, Global Head of Multi-Sector Credit at Junheng Capital, noted that Oracle's CDS has become a proxy for AI risk in the credit market. The widening spreads reflect market judgment on the scale of leverage required to fund AI infrastructure needs, rather than a bearish view on Oracle's fundamental business. To support its investments in AI, Oracle has significantly increased its debt load, with approximately $1.2 trillion in bonds included in the Bloomberg US Corporate Bond Index, making it the largest issuer in the index outside of the banking sector.
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