MARKET SNAPSHOT
U.S. stocks fell sharply Friday, with the Dow Jones Industrial Average joining the Nasdaq in correction territory, trading 10% below its recent high. Oil futures rose amid concerns about the continued closure of the Strait of Hormuz and doubts about a swift negotiated end to the war in Iran. Treasury yields were mixed and the U.S. dollar strengthened. Gold rose, after dropping in 10 of the past 12 sessions.
MARKET WRAPS
EQUITIES
U.S. stocks fell sharply again on Friday following the previous day'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 came as the Trump administration suggested it is gearing up for a longer confrontation in the Middle East.
Trump gave 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 was also weighing sending additional 10,000 ground troops and armored vehicles.
The Dow Jones Industrial Average fell 1.7%. The Nasdaq composite, which fell into a correction Thursday, dropped 2.2% . The S&P 500 fell 1.7% to close lower for its fifth straight week, its longest weekly losing streak in nearly four years.
Earlier Friday, equity markets in Asia ended mixed.
China's benchmark Shanghai Composite Index rose 0.6%, the Shenzhen Composite Index increased 1.3%, and the ChiNext Price Index added 0.7%.
Hong Kong's Hang Seng Index rose 0.4%.
Japan's Nikkei Stock Average fell 0.4%.
South Korea's Kospi lost 0.4%.
Australia's S&P/ASX 200 Index declined 0.1%.
New Zealand's S&P/NZX 50 Index fell 0.3%.
COMMODITIES
Oil futures rose on typical pre-weekend caution amid concerns about the continued closure of the Strait of Hormuz and doubts about a swift negotiated end to the war in Iran.
"War anxiety is elevated ahead of the weekend," said Arlan Suderman of StoneX. Despite President Trump's extending the deadline for attacks on the Iranian energy sector to give more time for talks, crude markets added risk premium overnight "fearing that global oil supplies may get tighter before we see meaningful relief."
Global crude supply looks to be reduced by 13% for some time, and even ending the war tomorrow would leave supplies tight for some weeks or months while infrastructure is repaired, Suderman added.
WTI settled up 5.5% at $99.64 a barrel for a 1.3% weekly gain. Brent rose 4.2% to $112.57 a barrel and was 0.3% higher on the week.
Front-month gold futures rose 2.7% to $4,492 a troy ounce Friday, turning around after dropping Thursday on a stronger dollar and Treasury yields. But it couldn't manage to turn positive today, and settled the week down 1.7%.
It's the fourth consecutive negative week for gold, the longest weekly losing streak since 2023.
"Precious metals have caught a bid," said Louis Navellier of Navellier and Associates in a note. But the determining factor for the longer-term trend in gold remains the war in Iran and how long the disruption lasts.
Silver gained 2.8% Friday, to $69.545 a troy ounce. Silver managed to finish the week on the positive side, gaining 0.3%.
TODAY'S TOP HEADLINES
Fed Officials Signal That Rate Cuts May Be Over
Officially, Federal Reserve policymakers are still projecting interest-rate cuts later this year.
But listen carefully, and a different message emerges. With inflation elevated by tariffs and oil, and the labor market soft but not collapsing, some officials are hinting that their next move could be either higher or lower.
It is a subtle but significant shift. As recently as a few weeks ago, the path looked firmly downward. But in the past week, many officials have sounded hawkish notes. Governor Lisa Cook, who consistently votes with the Fed's majority, said that as higher energy prices from the Iran war add to price pressures, prolonged inflation is again the dominant risk that the Fed faces.
Oil Execs See Higher Prices Ahead-And a Boost to Renewables
It could be months before we know the total cost of the unprecedented disruption to global energy supplies from the Iran war. That was the message executives from oil majors imparted at CERAWeek, S&P Global's annual energy conference in Houston this week.
Chevron CEO Mike Wirth and other executives from the world's biggest oil-and-gas companies told the conference that forward oil futures are underpricing the potential impacts of the loss of supply. WTI crude hit $100 a barrel Friday for the first time since the war began. December futures were priced at $77 a barrel and in the mid $70s early next year, though futures prices have been rising.
"The physical market isn't being reflected in the price," said Carlos Pascual, senior vice president at S&P Global and a former energy envoy at the State Department, said. "There is this assumption that it is going to get fixed tomorrow."
The Other Markets Being Rattled by the Blockage of Hormuz
Oil is trading near $100 a barrel, and natural-gas prices have surged to the point that countries dependent on imported fuel are taking drastic steps to cut consumption. Those aren't the only markets being rocked by the closure of the Strait of Hormuz.
The war's blockage of Persian Gulf ports is rippling far downstream of the region's oil-and-gas exporters and risks boosting prices of products ranging from beer cans to bluejeans and services such as magnetic resonance imaging, or MRIs. Those same supply-chain disruptions are creating lucrative new trades for investors.
These are some of the markets feeling the ripple effects:
Market Dive Points to Wall Street's Growing Alarm Over Iran War
Wall Street is trading like the worst pain from the war with Iran is yet to come.
For weeks, while missiles and drones flew around one of the world's key energy-producing regions, investors' hopes for a quick resolution buffered stocks from steep declines. A selloff in bonds stayed in line with past conflicts. A run-up in crude futures appeared to lag far behind the scope of a disruption that could be the most severe oil shock in history.
But an intensifying rout in recent days pulled the S&P 500 down for a fifth straight week to its lowest levels since August and dragged the Dow Jones Industrial Average and Nasdaq composite into correction-off more than 10% from their recent highs. President Trump's latest social-media post on potential off-ramps from a wider war wasn't enough to arrest crude prices' climb Friday, a sign that oil traders are increasingly bracing for more turbulence ahead.
Consumer Sentiment Declined in March, Michigan Survey Shows
March was the grimmest month of the year so far for consumers' economic sentiment as the Iran war raised gasoline prices and dented the stock market, the University of Michigan's latest monthly survey found.
The survey's headline sentiment index decreased to 53.3, from 56.6 in February. Economists polled by The Wall Street Journal were expecting a reading of 54.
A preliminary March reading, released two weeks ago, had shown the sentiment gauge at 55.5. But uncertainty about the course of the war and higher prices at gas stations have continued to darken consumers' mood in the weeks since, said Joanne Hsu, the survey's director.
Week Ahead for FX, Bonds: U.S. Jobs, Eurozone Inflation Data Could Reveal Middle East War Impact
U.S. jobs data and eurozone provisional inflation figures for March will attract attention in the coming week as data begins to give a picture of how the war in the Middle East, and particularly the surge in energy prices, has affected economies.
In Asia, markets will watch the Bank of Japan's policy summary and price data from Tokyo, as well as purchasing manufacturers' surveys across China and minutes from Australia's central bank.
Investors' main focus will remain on developments in the Middle East to see whether a resolution to the war looks possible.
Novartis to Buy Allergy-Drug Developer Excellergy for Up to $2 Billion
Novartis said it agreed to buy biotech company Excellergy for up to $2 billion, adding a new approach to treat allergic diseases to its immunology pipeline.
The Swiss pharmaceutical company said Friday that the deal for privately held Excellergy brings in a drug candidate in early-stage trials with potential to complement its existing allergy portfolio.
The Excellergy purchase is the latest in a series of acquisitions by Novartis in recent months, as the company turned to dealmaking to fill its drug pipeline and offset patent expirations. It follows Novartis's agreement last week to buy a breast-cancer drug candidate from Synnovation Therapeutics for up to $3 billion, and other recent deals that gave it access to experimental medicines to treat neuromuscular, cardiovascular and renal diseases.
Expected Major Events for Monday
08:00/TAI: Feb Business Indicators
23:00/SKA: Feb Industrial Production Index
23:00/SKA: Feb Service Industry Activity Index
23:30/JPN: Mar CPI (Tokyo), CPI ex-Food (Tokyo)
23:30/JPN: Feb Labour Force Survey
23:50/JPN: Feb Preliminary Retail Sales
23:50/JPN: Feb Preliminary Industrial Production
00:00/NZ: Mar ANZ Business Outlook
All times in GMT. Powered by Onclusive and Dow Jones.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 29, 2026 16:30 ET (20:30 GMT)
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