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Most stocks fell, including three out of four in the S&P 500.
Federico DiMarco works on the floor at the New York Stock Exchange in New York, Wednesday, March 25, 2026. (AP Photo/Seth Wenig)
NEW YORK (AP) — U.S. stocks deepened their declines Friday as Wall Street closed higher The fifth week of losing in a rowthe longest series of its kind for nearly four years.
The S&P 500 fell 1.7% to close its worst week since War with Iran He started. The Dow Jones Industrial Average lost 793 points, or 1.7%, and was down more than 10% from the record it set last month, while the Nasdaq Composite Index fell 2.1%.
The losses were a departure from Wall Street pattern this week, as the US stock market swung from gains to losses each day as hopes about a possible end to the war rose and fell.
Moments after US stock market trading ended on Thursday, President Donald Trump offered more potential for optimism. He extended a self-imposed deadline to “destroy” Iran’s power plants until April 6 if they did not fully allow oil tankers to exit the Persian Gulf through the Strait of Hormuz into the open ocean.
Oil prices fell immediately afterward, a sign of hope that some normalcy would return to the strait. That was similar to the relief that swept markets on Monday, when oil prices fell 10% after Trump announced the first delay to the deadline for clearing the Strait of Hormuz.
But oil prices resumed their rise as trading moved west on Friday from Asia to Europe and back to Wall Street. Despite Trump’s latest announcement, fighting in the Middle East continues. Iran showed no signs of backing down, and Israel threatened to “escalate and expand” its attacks on Iran.
“This week’s diplomatic discord between the United States and Iran has investors worried,” said Doug Beth, global equity strategist at Wells Fargo Investment Institute. “By the end of the week, risk appetite could no longer withstand the fog of war.”
“Any further statements by Trump about the deal are white noise for the markets,” Jim Bianco, president and macro strategist at Bianco Research, wrote in a social media post. “Only if the Iranians say the talks are going well will that affect the markets,” he added.
The price of a barrel of Brent crude rose by 3.4% to settle at $105.32. This is up from about $70 before the war began. The price of US crude rose by 5.5% to settle at $99.64 per barrel.
Financial markets fear that the war will disrupt the energy industry in the Persian Gulf for a long period. This could keep enough oil and natural gas out of the world’s markets to send a punishing wave of inflation through the global economy.
Not only would this raise prices for drivers who buy gasoline, but it could prompt companies that use any trucks, ships or planes to transport their products to raise their prices. It would also make electricity from gas-fired power plants more expensive.
If the war continues until the end of June, strategists at Macquarie say the price of oil could reach $200 a barrel. The record stands at just over $147, which was set during the summer of 2008. That’s when Iran tested missiles, including one that could reach Israel, and strong demand for oil from China helped prices rise despite the Great Recession.
High gasoline prices and the war are already hitting the confidence of American consumers, whose spending makes up the bulk of the economy. Sentiment among them was slightly lower in March than in February than economists had expected, according to a University of Michigan survey.
On Wall Street, most stocks fell, including three out of four stocks in the Standard & Poor’s 500 index. The index, the main measure of the health of the US stock market, is 8.7% below its all-time high reached in January.
Big tech stocks were among the market’s heavyweights, including declines of 4% for Amazon, 4% for Meta Platforms, and 2.2% for Nvidia.
Companies that sell non-essential items, which customers might stop buying if they spend more on gasoline, also declined sharply. Norwegian Cruise Line Holdings shares lost 6.9%, Starbucks shares fell 4.8%, and Chipotle Mexican Grill shares fell 4.1%.
In total, the S&P 500 index fell 108.31 points to 6,368.85. The Dow Jones Industrial Average fell 793.47 to 45,166.64, and the Nasdaq Composite fell 459.72 to 20,948.36. The Dow Jones and Nasdaq fell more than 10% from their records, a decline steep enough that professional investors called it a “correction.”
In overseas stock markets, indices fell in Europe after a mixed finish in Asia.
In the bond market, which has helped influence Trump’s actions in the past, Treasury yields have fluctuated.
The yield on 10-year Treasury bonds rose to 4.48% before falling to 4.43%. This is up from 4.42% late Thursday and from just 3.97% before the war began. This rise has actually caused interest rates on mortgages and other loans taken out by American households and businesses to rise, slowing the economy.
High Treasury yields and turmoil in the bond market were big factors that Trump cited a year ago when he backed away from his initial threats to impose global tariffs on “Deregulation Day.” The moves have prompted critics to claim that Trump is always doing his best, or “taco,” if the financial markets show enough pain.
AP Business Writers Chan Ho-him and Matt Ott contributed.
This release corrects the S&P 500’s 1.7% decline.