Indexes have come under pressure as the fighting between Israel and Hamas has intensified. A surge in borrowing costs, with the 10-year Treasury yield recently nearing 5%, has also weighed on markets. The benchmark yield retreated Friday, settling at 4.924%.
The Federal Reserve may hold interest rates steady at its next meeting, Chair Jerome Powell said Thursday, given that higher yields were tightening financial conditions.
American Express stock fell, despite the credit-card company reporting record quarterly earnings and revenue. (Here’s a Heard on the Street take on Amex.) Another round of disappointing earnings pressured bank stocks.
Indexes finished lower. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average were all in the red, including a 1.5% daily decline for the tech-heavy Nasdaq. The Dow was off 287 points.
The rough run for small-cap stocks continued. The Russell 2000, which finished Thursday at a 2023 closing low, fell further Friday.
Solar-power stocks tumbled after equipment maker SolarEdge Technologies cut its guidance.
Oil edged higher. The front-month contract for Brent crude rose, finishing the week just over $92 a barrel. Energy stocks were lower.
Gold continued its ascent. The precious metal, viewed by some as a haven asset, settled at $1,982 an ounce, its highest daily close since May.
