Wall Street Struggles for Direction as Iran Conflict Weighs on Markets
U.S. stocks traded mixed on Friday after giving up early gains, as Wall Street struggled to regain momentum following three consecutive days of losses. At the same time, oil prices trimmed earlier declines while fighting in the Middle East continued to fuel uncertainty across global markets.
Investors also reviewed the latest inflation data, which came broadly in line with expectations. However, economists noted that both recent inflation readings do not reflect the surge in oil prices that followed the U.S. and Israeli military strikes on Iran in late February.
Major U.S. Indexes Trade Mixed
By 11:10 ET (15:10 GMT), the S&P 500 slipped 0.2% to 6,658.91 points, while the Nasdaq Composite dropped 0.4% to 22,222.49 points. Meanwhile, the Dow Jones Industrial Average managed a modest gain of 0.1%, reaching 46,712.98 points.
Wall Street sentiment remains fragile after the major indexes declined in the previous session, leaving the S&P 500 and Dow on a three-day losing streak. Ongoing geopolitical tensions related to the Iran conflict have continued to weigh heavily on investor confidence.
Iran Conflict Continues to Shake Markets
The war between the United States, Israel, and Iran has now entered its second week, with little sign of a near-term resolution. President Donald Trump said Washington is “totally destroying” Iran’s military capabilities and economic infrastructure.
Reports also suggested that Trump told G7 leaders during a virtual meeting that Iran may be close to surrendering. However, analysts remain skeptical, noting that Tehran has not indicated any willingness to end hostilities.
Iran’s newly appointed Supreme Leader Mojtaba Khamenei has vowed to keep the Strait of Hormuz closed, a strategic shipping route that carries roughly 20% of the world’s oil supply.
Although U.S. and Israeli forces appear to have gained the upper hand militarily, analysts believe Iran may attempt to retaliate by disrupting shipping traffic through the critical oil transit corridor.
U.S. Moves to Protect Global Oil Supply
To ease pressure on global energy markets, the U.S. Treasury Department announced that countries will be allowed to purchase certain sanctioned Russian crude oil until April 11.
Treasury Secretary Scott Bessent also indicated that the U.S. Navy may escort commercial vessels passing through the Strait of Hormuz in order to ensure the safe flow of oil shipments.
Meanwhile, U.S. Defense Secretary Pete Hegseth said that more than 15,000 enemy targets had been struck during the military campaign against Iran. He also described Friday’s operations as potentially the largest wave of strikes conducted so far during the conflict.
Brent Oil Holds Above $100 Per Barrel
Concerns that the war could escalate across the Middle East have pushed Brent crude prices above $100 per barrel.
Oil markets have experienced significant volatility this week. Brent crude briefly surged close to $120 per barrel before falling below $90, highlighting the extreme uncertainty surrounding the conflict.
Analysts at Capital Economics said investors remain divided over whether oil prices will remain elevated in the months ahead.
According to Kieran Tompkins, senior climate and commodities economist at the firm, options market data suggests there is roughly a 20% probability that Brent crude will still trade at $100 or higher within three months.
By late morning on Friday, Brent futures had risen 0.5% to $100.97 per barrel, putting the benchmark on track for a weekly gain of nearly 7%. Before the conflict began, Brent had been trading around $70 per barrel.
U.S. Economic Data Offers Mixed Signals
Friday’s economic calendar also included fresh updates on growth and inflation.
The Bureau of Economic Analysis revised fourth-quarter U.S. economic growth lower. Real GDP expanded at an annualized rate of 0.7% in Q4 2025, significantly below the initial estimate of 1.4%.
Economists noted that while consumer spending remained relatively resilient, investment trends were mixed and trade data remained volatile.
Meanwhile, the core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, rose 0.4% month-over-month in January and 3.1% year-over-year, matching market expectations but remaining above the Fed’s 2% inflation target.
Economists warned that inflation could accelerate further because the current data does not include the impact of the recent oil price spike caused by the Iran conflict.
Additional government data showed U.S. job openings rose to 6.946 million in January, exceeding forecasts but reflecting a labor market that continues to show modest hiring activity.
Adobe Shares Slide After CEO Announces Departure
In corporate news, Adobe shares dropped 6.5% after the company announced that longtime CEO Shantanu Narayen plans to step down after leading the company for nearly two decades.
Narayen joined Adobe in 1998 and became CEO in 2007. One of his most significant strategic decisions was transitioning Adobe’s software portfolio into a cloud-based subscription model, which helped drive strong revenue growth.
Under his leadership, Adobe’s annual revenue grew from $3.58 billion to $23.77 billion. Despite strong quarterly earnings results and optimistic guidance, investors remain cautious amid rising competition from artificial intelligence-powered creative tools.
Ulta Beauty Shares Also Decline
Elsewhere, Ulta Beauty shares fell after the cosmetics retailer reported quarterly earnings per share slightly below expectations and issued weaker-than-expected guidance for fiscal 2027.
