(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)
US equity indexes traded mixed as escalating geopolitical tensions and rising energy prices weighed on risk appetite, partially offsetting moderate gains in technology.
The Dow Jones Industrial Average dropped 1% to 52,349.6, and the S&P 500 declined 0.2% to 7,645.1 after midday Friday. The Nasdaq Composite rose 0.1% to 26,035.1. All but three sectors declined, led by industrials and materials. Energy, real estate and technology were the only sectors to rise.
Fifteen of the 20 top-performing stocks in a category with a market capitalization exceeding $200 billion each were from technology, according to data compiled by Finviz.
Saudi Aramco has ordered the evacuation of its headquarters in Dhahran on the Gulf near Bahrain, Reuters reported, as fighting intensified with the Iran-aligned Houthis, Reuters reported. Meanwhile, an oil spill from a tanker was detected off the coast of Umm Al Quwain in the United Arab Emirates, the UAE Ministry of Climate Change and Environment said, according to the news report, without identifying the cause of the spill or the tanker involved.
The front-month West Texas Intermediate crude oil contract jumped 3.6% to $103.11 per barrel, and global benchmark Brent advanced 3.4% to $117.01 per barrel.
"Iranian attacks on ships in the Strait of Hormuz, Houthi attacks on the Saudis, Iran's threats to escalate the means of retaliation, and [President Donald] Trump's post about a week ago to 'finish the job' are all contributing to this sentiment," Derek Holt, head of capital market economics at Scotiabank, said in a note.
US Treasury yields rose after midday. The 10-year yield climbed 3.3 basis points to 4.99%, the 30-year rate advanced 2.3 basis points to 5.31%, and the two-year yield rose 5.1 basis points to 4.69%.
S&P Global's October flash reading of manufacturing conditions rose to 56.0 from 55.9 in September, versus the 55.5 forecast in a Bloomberg-compiled survey, indicating an expansion to a 53-month high.
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